First off, people are always trading bitcoin no matter what the investors decide to do. Transaction volume will always be high, as will liquidity, as traders continue to transact based on fundamental and technical analysis. It is irrelevant what HODLers do as they are always a minority.

in any  market price is decided based on how many are selling (supply) and how many are buying (demand). if you hold it will not change these two that much. of course if you are holding and not selling it will reduce the sell pressure but it won't stop the drop if a drop is to happen. the thing that can stop the drop is when you buy.
and also just like the drop the rise will also happen with or without HODL campaigns.

and these things will happen naturally whether people on the internet shout HODL or DUMP or anything else. these are just social media drama in my experience and confuses the newbies only.

in any case what i always tell people, specially newcomers is that you shouldn't sell AFTER the drop happened. if you want to sell either sell on top or sell when drop is just starting. if you woke up and saw  the drop already happened and price is a lot lower then it is already too late for you to sell. that is when HODL comes in because there is no point in selling when you are already too late.

no, the real solution is finding why price fell in first place and if it was not a logical reason then try and fix it by for instance educating the newbie weak hands who have been panic selling during that drop.
for example the drop from $20k down was logical and there is nothing you can do about it. that should have happened but the recent drop below $7k was not logical. it was purely the result of manipulation and panic sell of newbies who are too caught up in the ETF bullshit and are now blinded about what bitcoin truly is supposed to be.

Hodl is for those who do not have the time or skill to trade, whales who can play the markets can manipulate the prices and increase their gains. In this bear market it is sad but all we can do is hodl and cash in when necessary

Its called FUD and is aimed at weak hands and newbies who continue to sell
even when the prices have fallen. The best form of action after the price
movement downwards is to hold.

Its the Fear, the Uncertainty and the Doubt which these weak hands and newbies
cannot seem to shake.

Holding is essential at certain times, key times.

They are just people ideas and to me they seem theoritical but ideally on practical basis on market exchange, most people don't hodl but engage in trade.I will personally hold when price won't fetch ne any profit.

No matter how we keep advicing people to hodl, some newbie will still sell their coin, but what is the essence of selling when u are selling below the amount you bought

It truly doesn't matter if you just keep on holding. It will be a loss just for you since you will be the one missing on the opportunities to gain profit from the short gains. The market won't go down if the you keep on holding because if everybody is holding then there are no sell orders and this will increase the price of BTC rather than draining it since people will be willing to offer a greater price to buy it. Just the basic demand and supply rule will get you a clear picture of what I am trying to say.

if the price drops too sharp then the best option is to hold back for some time because I see the market will recover after that. if you sell right away then the loss will be great, whales and certain communities want us to panic sales