Definition ∞ A price resistance wall is a significant price level where a large volume of selling orders is concentrated, impeding upward price movement. This market phenomenon occurs when numerous investors are willing to sell their assets at or near a specific price, creating a substantial barrier that the price struggles to surpass. It can be formed by previous support levels that become resistance, or by a psychological price point where many holders aim to take profits or break even. Overcoming a resistance wall often requires considerable buying pressure and market conviction.
Context ∞ Traders and analysts closely monitor price resistance walls to identify potential ceilings for price rallies and to plan their trading strategies. The strength of a resistance wall is often determined by the volume of assets held by investors at or near that price point. A critical development to watch is a decisive breakout above such a wall, typically signaling a shift in market control and the potential for further price appreciation.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
