When looking to buy the dip, focus on altcoins that have undergone deep corrections, such as UNI, PONS, and ENA. Avoid short-term outperformers on the gainers list; once the broader market stabilizes, they’re likely to catch up on the downside 📉
The old logic: A sharp sell-off puts tokens to the test. If a token holds up while the broader market plunges, it means market makers are supporting its price, so you can hold it. This strategy worked very well during the market conditions in 2023 and the first half of 2024.
But the playbook has changed. Many tokens now hold their prices during a market crash, creating the illusion of support to lure buyers in. When the market recovers and other coins rebound, they start catching up on the downside. CRV and NEAR held up during the broader market’s earlier downturn, but eventually fell too.
Use the old strategy with caution now. The market is always changing, and our understanding needs to keep up. The only constant is change itself.
The old logic: A sharp sell-off puts tokens to the test. If a token holds up while the broader market plunges, it means market makers are supporting its price, so you can hold it. This strategy worked very well during the market conditions in 2023 and the first half of 2024.
But the playbook has changed. Many tokens now hold their prices during a market crash, creating the illusion of support to lure buyers in. When the market recovers and other coins rebound, they start catching up on the downside. CRV and NEAR held up during the broader market’s earlier downturn, but eventually fell too.
Use the old strategy with caution now. The market is always changing, and our understanding needs to keep up. The only constant is change itself.