Definition ∞ An overhead supply wall refers to a price level at which a large volume of digital assets was previously acquired by investors, creating substantial selling pressure as the price approaches that level again. These investors, now at or near their break-even point, may sell to recover losses or take profits. This phenomenon acts as a significant resistance point for upward price movement.
Context ∞ Identifying an overhead supply wall is a crucial aspect of technical analysis in cryptocurrency markets. News often discusses these price barriers as key hurdles for an asset’s recovery or continued rally. The ability of an asset to break through such a wall can signal a strong shift in market sentiment and potentially initiate a new upward trend.
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