Many traders wonder why the price of newly listed coins drops quickly after launch. This is a common pattern in crypto. When a token is listed, early investors, private sale buyers, and seed investors often sell their tokens for quick profit. This creates selling pressure right after the listing.
At the same time, new buyers may hesitate to enter because the price rises sharply at the start. Without enough new demand, the price starts to fall.
Also, some projects have large token unlocks or low liquidity, which can cause price drops. Hype can pump prices early, but once excitement fades, reality hits and prices settle lower.
This is why it's important to wait for a stable support zone before entering new listings. Let the initial dump complete, watch the volume, and then trade carefully.
