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

A cryptocurrency trader speculating in the Solana (SOL) ecosystem lost $37,000 worth of SOL trading a meme coin. As things developed, the trader bought under the ‘fear of missing out’ (FOMO) and panic sold for the realized loss.

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 Lookonchain.

17 minutes later, the Solana trader panicked and sold the recently acquired DEVIN’s stack for 158.8 SOL. Therefore, the address 8TALRxv9p5FdM5Mssvs8MTdZ9vh7DCj496YGoazYmJnu effectively lost 239 SOL, valued at around $37,000 by the time of reporting.

Solana trader: Panic sell and FOMO behaviors

This trading behavior is known as a panic 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.

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.

On that note, a ‘fear of missing out’ behavior happens when the trader enters a position after a meaningful positive performance. Nevertheless, doing that made this address enter the local top, providing net negative results.

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.

In this context, Lookonchain urged investors to “don’t FOMO” and “be patient.”

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.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.