The recent drop may have relationship to the auction
Absolutely not. Take a look at the first auction - it had indeed huge impact on the price of Bitcoin. Then there was the second auction which hardly any impact on the price. Now take this third auction and compare the price changes. Btw., I don't think the bitcoins from the auction will see the market any time soon.
Since previous auctions had no problem finding buyer at much higher prices, there will be no problems either. And i agree that the coins are not likely to be seen on the market anytime soon.
I think its soon time to hord coins, not dump them, or atleast thats what one could interpret from recent press/news.
cheers