How do panic selling affects the market and why does it affects the coins value?
The panic selling will make others sell their coins as well. the more the panic selling there is the low the price will be. More people who don't believe it, the more panic selling there will be. And the circle goes on adn on. And the situation will be worse and worse.
Panic selling can affect the market even you sold small amount considering the volume of people on panic. The market will go deeper because of that, but I think the market will recover right after hitting the bottom because that is where whales enter the market again.