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Crypto Dictionary

Dip

Definition

A short-term drop in the price of a cryptocurrency.

Deep Dive

A "dip" refers to a short-term, relatively minor drop in the price of a cryptocurrency or other asset. It is typically a temporary price decrease, often less severe than a correction (which is 10% or more), and is generally seen as an opportune moment for investors to buy the asset at a lower price. Dips are part of the natural volatility of markets and do not usually indicate a fundamental shift in the asset's long-term trend.

Examples & Use Cases

  • 1Savvy investors were quick to buy the dip when Ethereum briefly dropped 5% after a minor network congestion issue was reported.
  • 2A small dip in the new altcoin's price provided an excellent entry point for those who missed the initial surge.

Related Terms

PullbackCorrectionBuy the Dip

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