Retail investor 'dip buying' talk signals potential for further decline, Santiment says

An increase in social media discussions about "dip buying" among retail investors, following a minor crypto market rebound, could signal further downward pressure, according to an analysis by on-chain analytics platform Santiment. The firm noted that historically, a surge in such chatter has often preceded a short-term market bounce that is followed by another decline. Santiment suggested that the best buying opportunities typically arise when retail investors are not anticipating a market recovery. According to the analysis, retail traders often call the bottom too early, only to be humbled as the downturn deepens. The firm added that the most significant rebounds tend to occur when market optimism, or fear of missing out (FOMO), shifts to fear, uncertainty, and doubt (FUD).