Definition ∞ A resistance barrier signifies a price level or zone where a digital asset typically encounters selling pressure, hindering further upward price movement. This level is often established by previous price highs or significant areas of supply where sellers historically dominated. It functions as a ceiling, indicating that market participants are inclined to sell their holdings at or below this price. Resistance levels are a fundamental concept in technical analysis.
Context ∞ Crypto news reports frequently highlight resistance barriers as key technical levels to watch for potential price reversals or consolidation. A successful break above a strong resistance barrier is often viewed as a bullish signal, suggesting further price appreciation. Conversely, repeated rejections at resistance can indicate underlying market weakness and a lack of sustained buying interest.
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