A dip is an informal description of a price decline, usually one that traders regard as a temporary pullback. The term often appears during an upward trend, but social media may use it for almost any fall. Calling a decline a dip does not establish that it will be brief.
Put the move in context
The same price movement can look small on a monthly chart and substantial on an hourly chart. There is no universal percentage or duration that separates a dip from another decline. Recent highs, ordinary volatility, trading activity and the wider market help explain what a speaker means.
For example, a token may rise for several weeks and then lose part of those gains over two days. Traders might call that a dip even while disagreeing about whether the uptrend will resume.
A description with an assumption
Profit-taking, changing demand or unexpected news can accompany a dip, but the label itself does not identify a cause. A seemingly modest pullback can develop into a deeper correction or a lasting downtrend.
“Buying the dip” adds a trading decision: purchasing after the fall in anticipation of a recovery. The price decline alone does not show that the asset has become a bargain.