While it is true that every console reaches a saturation point where it won't move alot of hardware anymore, I would like to remark that the Switch as a console is very unusual in the sense that it's a hybrid. Like with the Gameboy back in the day it's not a completely new concept, but for the first time it perfected it.
The true potential of the console isn't a known factor and it can't be compared to a traditional console like the PS4.
Yes, it started dropping, but not because of saturation alone, but because of anticipation of the OLED model and due to not as many people being in lockdown anymore.
That the console will drop harder than any other console ever period in the year where it's most anticipated tiltle will launch in addition to a already known variety of guaranteed multi million sellers, is simply unrealistic and a pipedream.