The cryptocurrency trading sector is defined by high risk and high reward dynamics. Traders’ skills and market performance play a significant role in their outcomes. A recent case illustrates this well: a crypto trader made an astounding $22.7 million profit on their first transaction involving TRUMP coin, only to suffer an $8.48 million loss on the subsequent trade.
Investment in TRUMP Coin
Launched by U.S. President Donald Trump, the official meme cryptocurrency named TRUMP quickly gained popularity among crypto users. This trader, an early adopter, achieved substantial profits. In their initial investment, they purchased 1.03 million TRUMP tokens at a price of $1.79. As the price rapidly increased, they sold these tokens at $23.84, netting a remarkable profit of $22.7 million.
Loss in Coin Value
The trader reinvested in the same token, acquiring 309,514 TRUMP tokens, valued at $16.7 million. However, due to selling pressure, TRUMP coin’s price began to decline. Consequently, this crypto trader faced a 70% devaluation of TRUMP, resulting in a loss of $8.48 million.
After just a few hours post-launch, TRUMP coin became one of the trending meme coins. The price reached $75.35 on the same day, leading to a consolidation and subsequent downward trend. Over the week, the TRUMP price dropped by 50% and is currently trading at $26.16, with a market cap of $5.23 billion and a trading volume that decreased by 26% in the last 24 hours.
The TRUMP meme token hovers near the support line of $25.35. If buyer activity maintains this level, an upward trend could form towards the resistance point at $30.39. Surpassing this level may completely reverse the downtrend, with subsequent resistance levels determined by Fibonacci levels.
Losses and gains are commonly observed in the crypto sector. Critics express concerns about Trump’s performance and ongoing consolidation. Despite its connection to the U.S. president, doubts have arisen regarding the token’s recovery due to its volatility.
This incident underscores the fluctuations and investment risks prevalent in the crypto market. It is crucial for traders to act cautiously and conduct thorough research, considering the high volatility present in the market.
