【The root cause of retail investors’ losses: mistaking a big drop for a bottom】
When people see ENA down 87% from its peak, their first reaction is often, “It’s cheap enough now—time to buy the dip.” But I’ve been in business for many years, and I’ve seen too many people get burned by this idea of “cheap.”
A big drop doesn’t mean it’s hit bottom; it only means it used to be expensive. The real question is: what justifies its current price?
ENA is now at $ 0.195, down 12% over the past 7 days and 6.6% in the past 24 hours. On the surface, it does look oversold. But trading volume has surged abnormally, exceeding 5% of its market cap. That’s not retail investors buying—it’s someone selling off.
From a business perspective, selling pressure on this scale usually points to one of two things: either institutions are rebalancing their portfolios, or something has changed in the project’s fundamentals that retail investors don’t know about. Either way, a quick V-shaped recovery is unlikely.
So, can this thing actually make it into the real world?
I have to be honest: I haven’t seen a strong enough real-world business use case to support ENA. The current decline is a return to fair value, not an unjustified sell-off. If you believe in this sector for the long term, you can build your position gradually. But if you’re looking to bet on a rebound, the risk-reward at this price isn’t worth it.
As for how China’s economy affects Web3, my view is that we haven’t reached the policy bottom yet, and restoring confidence will take time. But that’s precisely what makes this a good time to position yourself—if you can stay clear-headed while others panic, you’ll have money ready to scoop up opportunities when they come.
Do you think this latest drop in ENA is an unjustified sell-off or a return to fair value?
When people see ENA down 87% from its peak, their first reaction is often, “It’s cheap enough now—time to buy the dip.” But I’ve been in business for many years, and I’ve seen too many people get burned by this idea of “cheap.”
A big drop doesn’t mean it’s hit bottom; it only means it used to be expensive. The real question is: what justifies its current price?
ENA is now at $ 0.195, down 12% over the past 7 days and 6.6% in the past 24 hours. On the surface, it does look oversold. But trading volume has surged abnormally, exceeding 5% of its market cap. That’s not retail investors buying—it’s someone selling off.
From a business perspective, selling pressure on this scale usually points to one of two things: either institutions are rebalancing their portfolios, or something has changed in the project’s fundamentals that retail investors don’t know about. Either way, a quick V-shaped recovery is unlikely.
So, can this thing actually make it into the real world?
I have to be honest: I haven’t seen a strong enough real-world business use case to support ENA. The current decline is a return to fair value, not an unjustified sell-off. If you believe in this sector for the long term, you can build your position gradually. But if you’re looking to bet on a rebound, the risk-reward at this price isn’t worth it.
As for how China’s economy affects Web3, my view is that we haven’t reached the policy bottom yet, and restoring confidence will take time. But that’s precisely what makes this a good time to position yourself—if you can stay clear-headed while others panic, you’ll have money ready to scoop up opportunities when they come.
Do you think this latest drop in ENA is an unjustified sell-off or a return to fair value?