Price Resistance Zone

Definition ∞ A price resistance zone represents a specific price range where an upward price movement for an asset typically encounters selling pressure, preventing further increases. This area is characterized by a concentration of sell orders or a historical ceiling for the asset’s value. It acts as a barrier to higher prices.
Context ∞ Traders and technical analysts closely monitor price resistance zones in digital asset markets to anticipate potential price reversals or consolidation periods. Breaking above a significant resistance zone can signal strong bullish momentum and attract new buyers. Conversely, failure to overcome resistance often leads to price corrections or sideways movement.