【You think an 84% drop means it’s “cheap”? The mistake retail investors make most often is happening all over again in 2024】
When people see ENA down 84% from its peak, their first reaction is: “That’s cheap! Time to buy the dip, right?”
That’s the most common cognitive bias among retail investors—mistaking “it’s fallen a lot” for a signal that “it’s worth buying.”
Honestly, an 84% drop sounds scary, but look closer: it’s up just 0.3% over seven days and 8.6% in the past 24 hours. What does that tell us? Short-term sentiment is moving; the fundamentals aren’t changing. FNG61 is hovering right on the line between greed and fear. People in the market are afraid of missing out, but also afraid of catching a falling knife. I know that mindset all too well—I feel the same way right now.
But “it’s fallen a lot” doesn’t mean “it’s time to buy.” In 2021, I had a coin that fell 90% from its peak, and I bought in for the same reason: “It’s so cheap.” What happened? There’s a reason things are cheap: even after dropping 90%, it can still get cut in half again. Why? Because a token with no real demand behind it isn’t cheap at any price.
That’s the very issue ENE is facing now. The 0.215 support level is still holding, and short-term sentiment is decent. But an ultra-low valuation is just the surface—the real question is whether this project has real-world use cases. Are the incentives for token holders clearly defined? If those two questions don’t have clear answers, then whether it’s down 84% or 94% makes little difference to investors.
So when I look at assets like this, I don’t ask, “How much further can it fall?” I ask, “Is it worth this price?” What’s your mindset right now? Are you willing to take the plunge this time?
When people see ENA down 84% from its peak, their first reaction is: “That’s cheap! Time to buy the dip, right?”
That’s the most common cognitive bias among retail investors—mistaking “it’s fallen a lot” for a signal that “it’s worth buying.”
Honestly, an 84% drop sounds scary, but look closer: it’s up just 0.3% over seven days and 8.6% in the past 24 hours. What does that tell us? Short-term sentiment is moving; the fundamentals aren’t changing. FNG61 is hovering right on the line between greed and fear. People in the market are afraid of missing out, but also afraid of catching a falling knife. I know that mindset all too well—I feel the same way right now.
But “it’s fallen a lot” doesn’t mean “it’s time to buy.” In 2021, I had a coin that fell 90% from its peak, and I bought in for the same reason: “It’s so cheap.” What happened? There’s a reason things are cheap: even after dropping 90%, it can still get cut in half again. Why? Because a token with no real demand behind it isn’t cheap at any price.
That’s the very issue ENE is facing now. The 0.215 support level is still holding, and short-term sentiment is decent. But an ultra-low valuation is just the surface—the real question is whether this project has real-world use cases. Are the incentives for token holders clearly defined? If those two questions don’t have clear answers, then whether it’s down 84% or 94% makes little difference to investors.
So when I look at assets like this, I don’t ask, “How much further can it fall?” I ask, “Is it worth this price?” What’s your mindset right now? Are you willing to take the plunge this time?