Lately, the cryptocurrency industry has been abuzz with the story of $ARC’s rise, a token that has seen a meteoric increase in value in recent months.
As it continues to surge impressively, one sharp trader by the name of BjD4f in the crypto community has captured the spotlight for making some serious gains off $ARC and, more importantly, for actually realizing those gains in the form of cashing out. BjD4f offloaded 700,000 $ARC tokens for a total of $182,280 USDC, at a price of $0.26 per token. And now, the obvious question on many investors’ minds is: Should we be taking profits on $ARC as well?
The $ARC token had an extraordinary run, and BjD4f (the trader) made a profitable move because of it. In December 2024, he purchased 2.575 million tokens at an average price of $0.03523 apiece. That means his total investment was just $90,700. But after two months, he cashed out 1.772 million of those tokens at an average price of $0.276 per token. So, what he did in between was hold on to the tokens and watch their value grow quite substantially—enough to net him a 6.5x return on his investment.
The $ARC token has increased almost 19% in the past 24 hours, and its price action suggests that the momentum is not over yet. But with such substantial profits already in the bag, we have to ask: Is it time to take the profits, or is there still more upside left for $ARC?
Analyzing the Surge: Is $ARC Heading Higher?
The strong advance of ARC has garnered the attention of traders and investors, with the token recently increasing 18.85% in just 24 hours. Such a sharp increase in price over such a short time frame usually brings a lot of attention and is often a sign of increased interest in the market. The attention from traders and investors has, of course, been very good for the price of ARC and for anyone holding it. But it has also brought with it some questions, which I will attempt to answer here with a mix of facts, figures, and a bit of speculation.
The continued expansion of the decentralized finance (DeFi) sector powers the ARC surge. Within DeFi, ARC has emerged as a serious contender. As user demand for DeFi solutions like lending, borrowing, and trading grows, ARC has attracted both retail and institutional investors. The surge itself appears to be the product of both continued strength among DeFi tokens more generally and still-present interest in ARC specifically. If interest continues and even grows among DeFi users, the price gains we’ve seen over the past two days could stretch over a future return period as well.
Any seasoned investor knows that markets are unpredictable, and the risk of a correction following a rapid rise is always a possibility. The recent performance of $ARC is impressive; it would take the average investor a long time to achieve what the token has done in just a few short months. Still, we need to ask ourselves whether the current price levels reflect the true, intrinsic value of the token or if we’re experiencing a speculative rally driven by a good old-fashioned hype train.
The Decision to Take Profits
For BjD4f, the action of selling 700,000 $ARC at $0.26 a token was a clear, profit-locking, risk-reducing move. With a 6.5x return on their initial investment, this trader has made a significant gain and, I suspect, is quite happy with their recent profits considering they still hold a sizable position of 800,000 $ARC. This sell-off could serve as a reminder to other traders that turning points in market are barely detectable until they are well underway. Taking profits in the face of recent price increases is a strategy that can help one preserve gains.
ARC Rally! Is It Time to Take Profits? 🤔
A sharp trader, BjD4f, just offloaded 700K $ARC for $182,280 USDC at $0.26 per token, locking in solid gains. But is it time for you to book profits too? pic.twitter.com/Z4HbjVE9cT— EyeOnChain 🔶 (@EyeOnChain) February 17, 2025
Realizing profits—especially after such a powerful price upswing—may also be a way to hedge against the risk of a price pullback. As the old saying goes, “buy low, sell high,” and with $ARC approaching (and even exceeding) its recent highs, the risk of a pullback could be more pronounced if traders keep looking to cash in on the upswing.
Even so, there are also factors that indicate $ARC may keep climbing. The 18.85% surge in the last week demonstrates there is a strong push in the market, and if that push is being carried by increased interest in the DeFi sector, $ARC may just keep rising. For now, that puts it in the bucket of “tokens that have appreciated of late but whose long-term viability is very much in question.”
Conclusion: To Sell or Not to Sell?
Deciding whether to take profits or hold onto $ARC ultimately comes down to each investor’s risk tolerance and investment strategy. For those who entered the market early and have already seen big gains, selling some or all of their position may be a very smart way to go and secure those profits. For others who are more in the buy-and-hold camp and believe in the long-term prospects of ARC, taking the route of holding onto their tokens and hoping for them to appreciate further may be the way to go.
One thing is for sure: $ARC has afforded early investors with spectacular returns, and the recent upsurge in the market has made it clear that there is still a lot of interest in the token. Whether $ARC will keep climbing or not is anyone’s guess, but for traders like BjD4f, who are still holding a lot of the asset, taking some profits while retaining what looks to be a pretty substantial position seems to make a lot of sense in this current market setup.
To sum up, with a really good history of making money and a recent price upswing, ARC finds itself at an intriguing crossroads. Investors who might be tempted to buy now along with many wholesale investors will need to consider a number of factors: present market conditions, their individual risk profiles, and the project’s long-run prospects. And those who might prefer to wait for what could be the next price dip would need to re-evaluate the situation with the same factors.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: rawpixelmasitta/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/is-it-time-to-take-profits-on-arc-a-sharp-traders-big-win-raises-the-question/