Definition ∞ Dip Buying Activity describes the market behavior where investors acquire an asset after its price has experienced a notable decline. This strategy operates on the assumption that the price drop is temporary and the asset will recover its value. It often signals underlying confidence in the asset’s long-term prospects. This action can stabilize prices.
Context ∞ Crypto news frequently highlights dip buying activity as a sign of strong market support or investor conviction during price corrections. This behavior indicates that market participants perceive current valuations as advantageous for accumulation. Such activity can contribute to a market rebound and reduced downward pressure.
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