Well, when people see the price dropping because the dump they will panic and join in.
Only stupid people.
Why would that be stupid? They will be about to lose all of their money. That's just how they try to save some of it before they lose all of it in the dump.
rational behavior
Panic selling is stupid.
Rational behavior is to place a value on the coin and only sell at that value, regardless of the panic buys and sells of the market.
I have placed a value I am willing to sell at, if no one is willing to buy at that price, they can't have my coins.
I sold 1/4 of my stake at 4k and bought back in at 3k because I knew people would panic. But I also knew that people would soon realize that a coin is not a single pool, nothing has changed. Anyone who gave up coins for a loss either did not know what they were investing in or outright panicked.
They lose money I gain coins for the same investment.