A Solana crypto trader turned his $80,000 into $1.2 million when he invested in AURA, a SOL meme coin. Unfortunately, he diamond-held the asset and ended up roundtripping the trade. This type of trading behavior is common among many newbies and some experienced traders who fail to take a profit, expecting a crypto asset to trend higher only to drop lower. Overholding an asset can happen to anyone when the potential of an asset is overestimated. What can be learned from this trade? Here are the details.
Crypto Trader Turns $80,000 to $1.2M
Trader XCkM bought 2 million AURA for $4,943 three months ago when the token launched on the Solana blockchain before transferring the tokens to his current wallet.
Over June and July, the trader added more AURA tokens to his portfolio, bringing the total investment to roughly $80,000. The ensuing AURA pump converted his $80,000 into $1.22 million.
This was a risky investment journey since it comes at a time when rug pulls and scams are rampant on the Solana network, which calls for users to educate themselves on crypto scams.
Trader XCkM made his last AURA trades on July 17, when he executed one buy and two sell trades before leaving his bag to grow.
Crypto Trader Round Trips His $1.2M in Profit
However, AURA price began to drop after hitting a market cap of $75 million. The token currently has an $8.9 million market cap. Even though the asset is down 86%, crypto trader XCkM is still holding his bag and is also slightly in profit as his AURA investment is now worth $144,000 at the current price. Additionally, he is the third largest AURA holder, holding 1.6% of the token supply, according to data from Bubble Maps.
Despite this turn of events, the crypto trader still holds a portfolio valued at $1,327,421.86, which is comprised of various assets. This includes Dogwifhat, worth $962.72K, SAD HAMSTER, worth $173.49K, SIGMA holdings totalling $33.51K, and Nomnom, valued at $1.02K, among other crypto.
Aura Price Analysis
The AURA price action has found a bottom and is currently going back up. The daily chart of the coin shows a potential round bottom forming, a bullish reversal pattern. This pattern may also be part of a cup and handle pattern, which could catapult the price by 222% to $0.03.
This means that even though crypto trader XCkM won’t retrieve all of his lost profits, his current bag will surge from $144,000 to $460,000, which is over 5-fold his initial investment of $80,000. It remains to be seen whether the incoming Solana offloading by FTX will affect the price of AURA.
According to Solscan, crypto trader XCkM is not a newbie. The wallet he used to buy AURA is over two years old, meaning he is an experienced investor. Nevertheless, the trader exhibited classic signs of greed while trying to capitalize on further AURA price surges.
The crypto space is riddled with expert traders making bad decisions due to greed and fear. Some clear telltale signs confirming a trader is greedy include having no trading plan, entering and rapidly exiting trades, overholding an asset, and overleveraging your portfolio.
Frequently Asked Questions (FAQs)
The trader likely held on expecting the price of AURA to continue rising. This behavior is common in crypto when traders overestimate an asset’s future potential, leading to missed opportunities for taking profit
“Roundtripping” refers to a scenario where a trader rides an asset’s price up, reaching a significant gain, but then holds the asset as it falls back down to or below the original value, resulting in missed profit opportunities.
While AURA’s price dropped significantly, the price chart is showing signs of a bullish reversal, with the potential for a cup-and-handle pattern forming. If this pattern materializes, it could catapult the price by 222%, potentially increasing the value of his current $144,000 investment to $460,000.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/crypto-trader-made-1-2m-from-80k-but-heres-the-twist/
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