Overshoot refers to a situation where a cryptocurrency’s price increases beyond its fundamental value, often driven by speculation or exuberant investor sentiment. This spike can lead to inflated prices that do not reflect the asset’s true worth based on factors like utility, adoption, or market conditions.When demand surges rapidly, prices may jump significantly in a short period. This often attracts more buyers, further pushing prices up. However, once the hype subsides or external factors negatively impact the market, the price typically corrects itself, falling back down toward its intrinsic value. Overshooting can result in high volatility, leading to substantial short-term gains for some traders but also considerable losses for others who enter the market too late or do not anticipate the impending correction. Understanding this phenomenon is crucial for investors, as it highlights the risks of emotional investing and the importance of thorough analysis before making decisions.