you are not panic selling, that part is right but what you do is not right either! you are panic holding!
when price goes down every experience trader knows that they have to sell and you have to do it as fast as possible.
you should not confuse "panic selling" with "stop loss". these are two very different things. a panic sell is when the dump is already over and price is at the bottom and you sell so that you miss out on the recovery. but a stop loss is when you sell a long time before the dump has ended to prevent a big loss and protect your investment.
also the "panic holding" is when a newbie thinks if he holds that altcoin that is getting dumped he is being right and he will make a profit. but what happens in reality is that the newbie loses a lot of money, locks his funds in some shitcoin that got dumped and because he will wait a very long time for the recovery and finally he will panic sell eventually at a much bigger loss.