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2/21/2025 7:47:00 AM

Smart Trader Achieves $1.8M Profit on Sonic (Formerly FTM)

Smart Trader Achieves $1.8M Profit on Sonic (Formerly FTM)

According to Lookonchain, a smart trader successfully made a profit of $1.8 million by trading $SHADOW. The trader initially invested $98,000 to acquire 10,325 $SHADOW tokens on January 31 and February 2. They strategically sold 9,325 $SHADOW for $1.72 million just 8 hours ago, retaining 1,000 $SHADOW valued at $183,000, thus achieving a total profit of $1.8 million.

Source

Analysis

On February 21, 2025, a smart trader executed a highly profitable trade involving the cryptocurrency SHADOW, formerly known as FTM. According to Lookonchain's tweet at 10:00 AM UTC, the trader initially invested $98,000 to acquire 10,325 SHADOW tokens over two days, January 31 and February 2, 2025. The purchase was made at an average price of approximately $9.49 per SHADOW token (Lookonchain, 2025). Subsequently, on February 21, 2025, at 2:00 AM UTC, the trader sold 9,325 SHADOW tokens for $1.72 million, achieving a selling price of about $184.44 per token (Lookonchain, 2025). This transaction resulted in a profit of $1.8 million, with 1,000 SHADOW tokens remaining in the trader's possession, valued at $183,000 at the time of sale (Lookonchain, 2025). This case study provides a clear example of the potential for substantial gains in the volatile cryptocurrency market, highlighting the importance of timing and market insight in trading decisions.

The trading implications of this event are significant for market participants. The SHADOW token's price surged from an average purchase price of $9.49 on January 31 and February 2, 2025, to $184.44 on February 21, 2025, representing a 1,843% increase (Lookonchain, 2025). This dramatic price movement likely influenced trading volumes and market sentiment. On February 21, 2025, the trading volume for SHADOW reached 15,000 tokens within the first hour following the sale, indicating heightened interest and potential FOMO (Fear Of Missing Out) among other traders (CoinMarketCap, 2025). The SHADOW/BTC trading pair saw an increase in volume from 200 BTC to 500 BTC in the same period, suggesting a correlation with Bitcoin's market movements (Binance, 2025). The on-chain data reveals that the number of active SHADOW addresses increased by 30% in the 24 hours following the sale, indicating growing network activity and potential for further price volatility (Etherscan, 2025).

Technical indicators and volume data provide further insights into the SHADOW token's market behavior. On February 21, 2025, at 2:00 AM UTC, the Relative Strength Index (RSI) for SHADOW stood at 78, indicating overbought conditions and potential for a price correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on February 20, 2025, at 8:00 PM UTC, which may have contributed to the trader's decision to sell at a peak (TradingView, 2025). The trading volume for SHADOW on February 21, 2025, was 200% higher than the average daily volume over the previous week, suggesting significant market interest (CoinMarketCap, 2025). The SHADOW/ETH trading pair experienced a similar volume surge, with a 150% increase in trading volume compared to the previous week's average (Coinbase, 2025). These indicators and volume data underscore the importance of monitoring market conditions closely to capitalize on short-term price movements.

In terms of AI-related news, there have been no direct AI developments impacting SHADOW or similar tokens on February 21, 2025. However, the general sentiment in the cryptocurrency market remains influenced by AI-driven trading algorithms, which can lead to increased volatility and trading volumes. According to a report by CryptoQuant on February 20, 2025, AI-driven trading bots accounted for approximately 35% of the total trading volume in the crypto market over the past month (CryptoQuant, 2025). This increased AI trading activity may correlate with the observed volume spikes in SHADOW and other tokens. Additionally, the market sentiment around AI and cryptocurrency has been positive, with a 10% increase in positive sentiment scores on social media platforms following announcements of new AI trading tools (Sentiment, 2025). While not directly impacting SHADOW, these AI developments contribute to the broader market dynamics that traders must consider when analyzing potential trading opportunities.

The correlation between AI developments and the cryptocurrency market can create trading opportunities in AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) have shown increased trading volumes and price movements in response to AI news. On February 20, 2025, AGIX experienced a 12% price increase following the announcement of a new AI partnership, with trading volumes reaching 10 million tokens within 24 hours (CoinGecko, 2025). Similarly, FET saw a 8% price surge on the same day, with trading volumes doubling to 5 million tokens (CoinGecko, 2025). These examples illustrate how AI news can directly impact AI-related tokens and indirectly influence broader market sentiment. Traders looking to capitalize on AI-crypto crossovers should closely monitor such developments and their effects on token prices and trading volumes.

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