But it kept on rising so I just got back in at 3100. Then the correction appeared around 3400 (you can see it on the Mintpal graph around 14:00 European time). Since then it's rising and more volume is now appearing rather than less.

Up to about 2500, all the buys were decimals of a bitcoin with the odd one over 1 BTC. Now bigger fish are arriving with 5 and 6 BTC at a time to punt on a rising coin. (EDIT: There is an 11 BTC buy order at 3900 right now. So people clearly think it's going higher of they think they will find the liquidity to cash out that amount later on).

The reason this coin is rising (and why I bought some) is:

[1] - it is a proof of stake amongst an ocean of proof of work

[2] - it's had some genuine thought put into the coin-omics, such as optimal inflationrate etc

[3] - it looks like a genuine original

[4] - it's had a slow, steady rise rather than a panic buy like Mazacoin

[5] - there aren't a load of miners waiting to dump on Cryptsy when more liquidity appears

So I don't think it's going to fall off a cliff. I think it will get a few corrections, stabilise and then drift either up or down for a while.

Just my thoughts - could be wrong but gut feeling says it's not a panic buy (well apart from at this precise moment in time) or a panic sell.