When more and more traders begin to sell a currency and buy another in expectation of a decline in the value of that currency, then that currency will most likely decline in value as a result of the bandwagon effect.

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This is because the bandwagon effect causes a self-fulfilling prophecy where the expectation of the decline leads to increased selling, which in turn actually decreases the currency's value due to the increased supply and decreased demand for it.

When More and More Traders Begin to Sell a Currency