To everyone’s surprise, a crypto whale who owned many $ACT tokens made a costly decision and decided to sell 1.9 million $ACTs for a loss of $36,000. The latest analysis by Lookonchain reveals that this whale has been holding these tokens for almost 21 days. However, it lost out on a phenomenal opportunity that was about to happen after selling the tokens.
A diamond hand sold 1.9M $ACT at a loss of $36K 2 days ago, and it’s now worth $830K!
This diamond hand spent 509 $SOL($79K) to buy 1.9M $ACT 23 days ago and has held onto $ACT for 21 days.
Had he been more patient, he would have made a profit of over $750K!… pic.twitter.com/QKg6tAnFUq
— Lookonchain (@lookonchain) November 11, 2024
$ACT Surges Following Whale’s Exit
It purchased the $ACT tokens by investing 509 SOL (approximately $79,000) in about three weeks. This investment is now worth $830K when $ACT’s price went up on the market shortly after the exit of the whale.
It also shows the unpredictability of the crypto market, where if the whale had waited for just a few more days, they could have added more to that investment.
Diamond Hands Can Backfire in Volatile Markets
Diamond hands refer to situations where investors will hold their assets regardless of the volatility, anticipating a long-term rise in value. However, as seen in this case, even experienced traders can be wrong in their timing of exiting out of trades.
This scenario underscores a common challenge in crypto trading: knowing when to exit. Profit-taking at an early stage can reduce losses, but at the same time, it reduces the maximum profits which may be earned.
With the increase in the value of $ACT, the market offered a fine chance immediately after the exit of a whale, which gave an extra twist of volatility in investing in cryptocurrencies.
Learning from Missed Opportunities
For the other investors, this incident should make them wise up, as they need to wait long and at the right time to invest in the volatile markets. Even after 21 days, sometimes it will be too early for a whale to sell, as seen in the case above.
Still, situations like these are not very rare in crypto, as price swings can be sharp and unexpected despite traders’ experience. For now, the market awaits as $ACT keeps moving, and the whale hasty move serves as an essential reminder of the continuously shifting landscape of cryptocurrency trading.
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