Solana

FOMO

Raydium

when

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 <p class="paragraph">A cryptocurrency <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> speculating in the Solana (SOL) ecosystem lost $37,000 worth of SOL trading a meme coin. As things developed, the <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> bought under the ‘fear of missing out’ (FOMO) and <a rel="noopener noreferrer nofollow" title="panic" href="https://thebittimes.com/tag/panic.html">panic</a> sold for the realized loss.</p>
 <p class="paragraph">In particular, the Solana trader purchased 398 SOL worth of the cryptocurrency DEVIN during a price surge. The chart formed a local high at these levels and started dropping a few minutes later, as reported by <em>Lookonchain</em>.</p>
 <p class="paragraph">17 minutes later, the Solana trader panicked and sold the recently acquired DEVIN’s stack for 158.8 SOL. Therefore, the address <em>8TALRxv9p5FdM5Mssvs8MTdZ9vh7DCj496YGoazYmJnu</em> effectively lost 239 SOL, valued at around $37,000 by the time of reporting.&nbsp;</p>
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    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
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 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="454" src="https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp" alt class="wp-image-174392" srcset="https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp 1024w, https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp 300w, https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp 768w, https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp 1536w, https://cdn.thebittimes.com/images/2024/05/07/bdb04547a06d76e4002011bd325e7523.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
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   DEVIN/SOL on Raydium DEX. Source: <em>Lookonchain</em>
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 <h2 class="wp-block-heading" id="h-solana-<a rel=" dofollow title="trader" href="https://thebittimes.com/tag/trader.html" rel="noopener noreferrer nofollow">trader-<a rel="noopener noreferrer nofollow" title="panic" href="https://thebittimes.com/tag/panic.html">panic</a>-sell-and-fomo-behaviors"&gt;Solana <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a>: Panic sell and FOMO behaviors</h2>
 <p class="paragraph">This trading behavior is known as a <a rel="noopener noreferrer nofollow" title="panic" href="https://thebittimes.com/tag/panic.html">panic</a> sell or capitulation. A sell-off decision under losses during an aggressive price crash. Essentially, investors do that in an attempt to lower forecasted losses if they believe the price will continue crashing.</p>
 <p class="paragraph">In this case, further price action justified the Solana trader’s action, as the panic selling occurred in the first 5 minutes of a 50-minute crash. However, this happened just before a major retracement that eventually surpassed the SOL-cost average of the FOMO purchases.</p>
 <p class="paragraph">On that note, a ‘fear of missing out’ behavior happens when the <a rel="noopener noreferrer nofollow" title="trader" href="https://thebittimes.com/tag/trader.html">trader</a> enters a position after a meaningful positive performance. Nevertheless, doing that made this address enter the local top, providing net negative results.</p>
 <p class="paragraph">If this Solana trader had waited for a correction before making the purchases—without FOMO—the results would have been better. Additionaly, if the trader had waited for the volatility to play out and did not panic sell, the address would currently hold a profitable stack of DEVIN.</p>
 <p class="paragraph">In this context, <em>Lookonchain</em> urged investors to “don’t FOMO” and “be patient.”</p>
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   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">Please be patient and don’t be #FOMO!<br><br>This guy lost 239 $SOL($37K) in just 17 minutes!<br><br>He #FOMO bought $DEVIN with 398 $SOL at the price high.<br><br>After holding it for only 17 minutes, he panicked because of the price drop and sold it for 158.8 $SOL.<br><br>If he hadn't sold, he would… pic.twitter.com/xWI6KWHLw2</p>— Lookonchain (@lookonchain) May 6, 2024
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 <p class="paragraph">Interestingly, the reported event illustrates two common behaviors among investors, which makes most traders lose money in the long term. Cryptocurrencies are highly volatile assets, and speculators should put emotion aside when making financial decisions.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/this-solana-trader-lost-37-000-in-17-minutes-with-fomo-and-a-panic-sell-tbt87653.html">https://thebittimes.com/this-solana-trader-lost-37-000-in-17-minutes-with-fomo-and-a-panic-sell-tbt87653.html</a></p>

This Solana trader lost $37,000 in 17 minutes with FOMO and a panic sell

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