Santiment warns: Active buying on dips could lead to a new market decline
Date: 2025-10-29 Author: Oliver Abernathy Categories: BUSINESS
Following a moderate market correction on October 28, 2025, retail investor activity increased significantly. The analytical platform Santiment recorded a significant surge in mentions of the phrase "buy the dip"—a popular expression meaning "buying on a dip." However, experts warn that such behavior often foreshadows not a rise, but a continuation of the decline.
Santiment's historical data shows that widespread optimism during corrections is often premature. When the market is overly bought after a decline, it may indicate excessive investor confidence in a quick recovery. In reality, significant reversals usually occur when most participants lose faith in further growth and fear and doubt prevail.
According to the platform's analysts, strong recovery phases are formed not in an atmosphere of greed and FOMO (fear of missing out), but rather against a backdrop of FUD (fear, uncertainty, and doubt). It is precisely when market participants become pessimistic and reduce activity that the conditions for real growth are created.
Santiment also highlighted the ONDO and SPX tokens, which are experiencing increased negativity on social media and in the media. Analysts note that such a wave of criticism and skepticism has often served as a harbinger of a subsequent upward trend reversal. According to experts, this may indicate the approaching moment when interest in these assets will increase again.
Previously, CryptoQuant specialists also noted a change in market participant behavior: after the crash, traders began returning to spot positions, which may indicate an attempt to stabilize portfolios amid volatility.
Therefore, despite the apparent appeal of the "buy the dip" strategy, analysts advise caution. Widespread adherence to this principle may signal overheated expectations rather than the beginning of a new bullish cycle. According to Santiment experts, true entry points emerge when the market is in a state of apathy, and belief in growth has virtually disappeared.
Overall, current market sentiment points to a mixed phase: some investors are rushing to take advantage of the price decline, while analysts see the risk of a repeat decline.
