Resistance zones are price levels on a financial chart where an upward price trend is expected to encounter selling pressure, potentially causing a pause or reversal. These zones are formed by previous price peaks or areas where a significant number of sellers entered the market. They act as barriers that an asset’s price struggles to surpass. Identifying these zones is a core component of technical analysis.
Context
Crypto news and market analyses frequently point to specific resistance zones when discussing potential price ceilings for digital assets. Breaking above a strong resistance zone can signal a significant bullish shift, while failing to do so may indicate a continued downward or sideways trend. Traders use these zones to inform their entry and exit strategies. Their presence helps predict future price movements in volatile markets.
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