Catching a falling knife means trying to BTFD, while the dip itself hasn’t finished yet, or might never finish and a token price keeps on tanking. You might cut yourself in spectacular fashion, financially speaking.
So, while buying a dip could be a way to DCA in and lower the average cost of your token, it might be the start of a real crash, it might be a rug, or a black swan event might cause a much further drop.
See also bagholders.
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