An NFT evening report revealed that the recent BTC price rally above $100k created 14,211 new millionaires and four new billionaires, creating FOMO among people to achieve the same. However, the crypto market is unpredictable, and profiting trades can bring heavy losses. This is why, this one crypto trader lost nearly $500k on the PEPE token, as his trades were FOMO driven.
How A Crypto Trader Lose $500k With PEPE Token?
Spotonchain, an AI-driven analytics platform’s X post, reveals that an anonymous trader is bearing heavy losses in his PEPE Coin investment. Although profit and loss are common in crypto trading, a few end up following FOMO, which often leads to losses even when the investment is in a profitable asset.
It happened with the trader “0x4ec” who spent 4.75 WBTC and 150K USDC ($1.59M) to buy 60.782B PEPE on December 10. At that time, the token was moving towards a peak but soon entered a downtrend amidst increased volatility as the PEPE price had hit an ATH. Instead of holding, the trader dumped all his PEPE-based tokens at low in fear of further losses, bearing a loss of $477K.
PEPE tops the most demanded meme coins list, with its heavy returns and impressive performance over the year. However, the investor bought the PEPE when it was at a peak and lost thousands of dollars as the price corrected over the increased volatility.
PEPE Token Downtrend Continues, 11% Lost Today
With the Bitcoin price hitting record highs, the market was hitting its prime until today. PEPE Coin and the rest of the cryptos began struggling amidst the crypto market crash, influenced by the FED’s 25 bps rate cuts and Jermome Powell’s take on Bitcoin reserve. With that, the PEPE price has plummeted 11% in the last 24 hours, currently at $0.00001916. However, the drop began even before, and on the weekly charts, the PEPE price has dropped 24%. With that, its market capitalization and trading volume stand at $8.05B and $3.43B.
The Nansen Data reveals that smart money began moving from the market, as the smart money traders holding PEPE dropped from 115 to 95 within just two weeks. Nevertheless, many analysts see this as a common correction for the meme coin, which leads to bigger rallies.
However, according to the technical analysis, the PEPE token is in a bearish trend, with the RSI falling below 50 and the MACD and moving average representing sellers. A bullish move could happen if the Pepe coin moves past the key resistance at $0.00002821.
What’s In This For You?
The PEPE Coin lost the battle with the bears, ending with a 24% correction over the week. With that, the PEPE price has moved 32% away from the ATH, currently trading at $0.00001916 under the seller’s presence. One such seller lost nearly $500k after he FOMO bought the token near the ATH and sold it when the token collapsed. Amidst this ATH-induced volatility and the crypto market crash, the PEPE price struggle is likely to continue until it bounces back above the key resistance at $0.00002821.
The post How This Trader Lost Nearly $500K in 9 Days on PEPE Token? appeared first on CoinGape.
