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Crypto Trader Surrenders After Losing $2 Million, Joins Whale Trend
A cryptocurrency The trader deposited $2.1 million from Synthetix (SNX) has Binance on July 20, capitulating on their entire SNX position with approximately $254,000 in realized losses.
SpotOnChain data shows the whale address capitulation activity’0x921“, suggesting that the trader believes in further losses for Synthetix. Usually, crypto whales can have a strong influence on cryptocurrencies“price dynamics, so it’s worth following them to learn more.
In particular, this cryptocurrency trader acquired 1.07 million SNX in four withdrawals at one Average cost in dollars of $2.203 million. These purchases took place between January 31 and August 24, for an estimated cost of $2.35 million.
So, if she actually sold all of her positions at this one deposit, the address would capitulate with 10% losses. At the time of the deposit, SNX was trading at $1.965, recovering slightly from a local low below a support and resistance.
0x921e374c304e681ff4b87b9e239cb6c03147c3e1 Presentation of PnL (SNX). Source: SpotOnChain
Other Synthetix Trader Activity and Capitulation
SpotOnChain has been monitoring the trading activity of other Synthetix whales in particular, and it appears that capitulation is a trend. Traders typically capitulate as a strategy to manage losses. This can happen when they expect an asset to fall further or when they are evaluating the cost of an opportunity with competing assets.
On May 30, the crypto-trader “0x97c” deposit all of their 594,350 SNX to Binance. At the time, this stack was worth $1.72 million for a relevant loss of 27.4%, or about $646,000. Additionally, another whale capitulated Synthetix shares closed with massive losses of $2.18 million, selling for 31.1% less than their average purchase price on June 2.
On the other hand, a smart trader decided to invest in Synthetix for the first time on July 7, below, by purchasing 400,000 SNX for $637,000 on Uniswap (United).
This shows how even whales can make mistakes in the unpredictable game of trading, especially when dealing with an asset class as volatile as cryptocurrencies. Cryptocurrency traders and investors should remain cautious and have a clear strategy before taking action, taking into account several different factors.
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