Retail investors showed heightened activity following a minor market correction on October 28, 2025. According to Santiment, mentions of the phrase “buy the dip” spiked sharply, suggesting growing interest in purchasing assets during short-term declines.
Experts caution that such behavior historically does not always precede upward trends. In fact, overly aggressive “dip buying” can indicate premature optimism, potentially setting the stage for further price declines.
Santiment analysts highlighted that the most significant recoveries often occur when market sentiment is at its lowest, rather than when traders expect growth. The shift from FOMO (fear of missing out) to FUD (fear, uncertainty, doubt) plays a key role in these dynamics.
The research also points to tokens like ONDO and SPX, which currently face elevated negative sentiment. Such conditions have historically preceded trend reversals to the upside.
Previously, CryptoQuant reported that traders were returning to spot positions following the recent downturn, further signaling a cautious approach to market participation.
Bottom line: While dip buying remains a popular strategy among retail traders, Santiment emphasizes that excessive optimism at early recovery stages can paradoxically increase the risk of further declines.
