The crypto trading industry has been described as a high-risk, high-reward industry where the investor’s trading skills, market performance, and many other factors play a significant role. One crypto trader and their experience perfectly explain this situation. The person made $22.7M in the TRUMP coin at first, but the second trade endup with $8.48M in loss. How? Let’s discuss.
Crypto Trader Rollercoaster Ride With TRUMP Coin
The current US President, Donald Trump, launched the official meme crypto TRUMP, which quickly became popular among crypto users. Some early adopters, including this crypto trader, even made millions in profits. However, the trader’s second decision to reinvest in the coin went wrong.
According to the Lookonchain X post, the person first bought 1.03M TRUMP at the price of just $1.79. After a massive rally, the trader sold all these tokens at the price of $23.84, making a profit of $22.7M. This way, the person’s first TRUMP investment led to millions of profits. The trader reinvested in the same token, where the individual bought 309,514 TRUMP, equivalent to $16.7M.
However, the TRUMP meme coin price went downhill amid selling pressure. As a result, the crypto trader is now facing a $8.48M loss amid TRUMP’s 70% and broader crypto market crash.
Losses and profits are common in the crypto industry. Critics are concerned about Trump’s performance and ongoing consolidation. More importantly, despite its association with the US president, the meme coin has become a victim of volatility, creating doubts about its recovery.
TRUMP Coin Might Recovery if This Happens
Within a few hours of its launch, the Trump token became one of the most trending meme coins. The same day, it reached its prime of $75.35 before entering a consolidation and complete downtrend.
Over the week, the TRUMP price crashed by 50%, currently trading at $26.16. It has a market capitalization of $5.23B and a trading volume of $3.64B, down 26% in the last 24 hours, showing reduced investor interest.
However, the Trump-themed meme token is near its horizontal support line of $25.35. If the buyers’ activity increases and defends this level, an uptrend may form, pushing the token to the key resistance at $30.39. This is a local high, so a move past that will ensure the complete reversal of the downtrend, where the next resistance aligns with 0.5 Fibonacci retracement at $39.43 and higher.
With that, the bullish momentum can completely overtake, so investors can watch further key levels at $43.44, $48.4, and as high as $77.77 based on the Fibonacci extension. However, if the token fails during the consolidation phase, it may continue to decline.
Key Things To Remember From This Post
The recent moves made by this crypto trader highlight the inherent crypto volatility. The trader’s drawdown in his PNL highlights the crypto market’s volatility. This happened as the Trump coin entered a complete downtrend, losing 70% of its value since ATH, set eight days ago. The token currently trades at $26.16 but could surge to as high as $77.77 based on the Fibonacci extension.
However, it is essential to note that the journey may or may not go exactly with the given extension. Investors must do their best research to ensure minimum risk in their investments.
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