Support level and resistance level
Today’s post is serving up a little bit of trading theory, so let’s discuss two important concepts.
“Support” and “resistance” levels are key terms in the cryptocurrency market.
A support level is a price point where a coin’s rate falls but cannot break down. That is, investors consider this point attractive to buy the asset and, thus, stop its fall by actively buying.
A resistance level is a price point that a coin’s rate is hitting but cannot overcome upward. Because investors begin to sell actively, and the price goes down.
Analyzing these levels helps to predict further price movements and form a successful trading strategy.
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