What to do when a coin you hold starts dumping

How to read the situation

The first question is whether liquidity is intact. A drop on stable liquidity and cooling volume may be a normal dip; a drop accompanied by draining liquidity is likely a rug and demands an immediate exit.

Also check whether the dev wallet or large holders are distributing — that turns a "dip" into a top.

What to do right now

1. Check the liquidity figure first — is it draining?
2. Look for dev-wallet or whale sells.
3. If liquidity is draining, exit immediately into whatever depth remains.
4. If liquidity holds and your thesis is intact, refer to your pre-set invalidation.
5. Act on your plan rather than freezing.

What not to do

• ✗ Averaging down blindly on a coin with draining liquidity.
• ✗ Telling yourself "it'll bounce" with no evidence.
• ✗ Removing or ignoring your invalidation level.
• ✗ Waiting for a crash you can already see starting.