A dump refers to a significant sell-off of a specific cryptocurrency, leading to a swift decline in its price. This usually happens when traders or investors decide to liquidate their holdings, often after a period of rising prices.These sell-offs can occur for various reasons. Investors might want to take profits after a price increase, or there might be negative news affecting the asset or the market as a whole. Large holders, known as “whales,” can influence prices drastically by selling large amounts at once.The impact of a dump can be severe, causing panic among smaller investors who may rush to sell to avoid further losses. This can create a downward spiral, amplifying the initial drop in price. Traders often watch for potential dump signals to protect their investments, and some may even try to capitalize on the volatility that a dump creates.Understanding dumps is essential for anyone involved in trading or investing, as they highlight the market’s risks and the emotional reactions of participants.