Both.
Same as the stock market: the current price is, by definition, the point where buyers and sellers balance. That point will almost certainly be BOTH higher and lower at different times in the future. Try to see the long term movement. Is the Internet growing? What about alternatives to domains?
A complicating factor is that this market has both short and long term investors. Some of the money coming from China is leveraged. That increases volatility on both ends.
Short domains with "S" do go a little higher, S is the most common letter in most languages. "A" is second in the West, but it is not a CHIP letter for China. "V" is seeing some love recently because of VR, but in general I consider it the worst letter except for "Q". The main market for "V" is Europe and they are in recession.
A good indicator of letter quality is to look at what you can buy cheaply and extrapolate what is missing. That's how I learned that "S" at the end of a LLLL is really hard to find.