@shanegilmore
Panic buying occurs when investors react emotionally to short-term price drops or fear missing out, often driving sudden spikes in trading volume and token prices. Indicators include rapid inflows into popular assets, large buy orders, and increased leverage usage. On-chain metrics such as wallet activity, exchange deposits, and DEX volume can reveal behavioral spikes. Social sentiment analysis from Twitter, Telegram, and Reddit also highlights hype-driven buying. While panic buying can temporarily inflate prices, it carries high risk, often followed by sharp corrections. Monitoring transaction patterns, liquidity depth, and sentiment helps differentiate genuine market growth from emotionally driven moves, enabling informed strategy adjustments.
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