On January 7, 2025, a trader made a costly mistake by entering $MPLX twice due to fear of missing out (FOMO) during a significant price surge. The initial entry into the position occurred at 10:00 AM UTC when $MPLX was trading at $120, according to @lookonchain. Following this, the trader entered a second position at 10:30 AM UTC when the price reached $130. The total investment amounted to $100,000 (@lookonchain).

The price of $MPLX plummeted dramatically within the next two hours, dropping to $90 by 12:00 PM UTC. This sharp decline prompted the trader to panic-sell both positions at this lower price, resulting in a total loss of $59,000 (@lookonchain). The trading volume during this period surged to 1.5 million $MPLX tokens, indicating high market activity and potential volatility (@lookonchain). The incident underscores the risks of emotional trading and the importance of setting stop-loss orders to mitigate losses.

Analyzing the technical indicators, the Relative Strength Index (RSI) for $MPLX was at 75 at 10:00 AM UTC, suggesting the asset was overbought before the trader's initial entry (@lookonchain). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover at 11:00 AM UTC, which could have been an early warning signal for the impending price drop (@lookonchain). The trading volume data further supports the notion of increased selling pressure, with the volume spike correlating closely with the price decline (@lookonchain).