Definition ∞ A price support zone represents a range of prices where buying interest is sufficiently strong to prevent a digital asset’s price from falling further. This area typically forms after a period where the asset has traded, and a significant number of market participants are willing to acquire or hold it at those levels. It acts as a floor, absorbing selling pressure and potentially initiating a price reversal. These zones are crucial for technical analysis.
Context ∞ Price support zones are a fundamental concept in cryptocurrency technical analysis, frequently discussed in market commentary and trading news. Traders monitor these zones to identify potential entry points or to assess the strength of a market downtrend. The ability of an asset to hold above a key support zone often signals underlying market resilience and can influence short-term trading strategies. This guides investment decisions.
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