Definition ∞ A structural resistance zone is a price area where selling pressure is historically strong, hindering further price increases. This refers to a specific price range on an asset’s chart where a substantial number of previous transactions occurred at or near that level. This leads to a concentration of sellers. As the price approaches this zone, those who bought at higher prices or wish to take profits often initiate sales, creating an overhead supply.
Context ∞ Identifying structural resistance zones is a core component of technical analysis in cryptocurrency markets, helping traders and investors anticipate potential price reversals or slowdowns. News often discusses how digital assets react to these zones. This provides insight into market strength and the likelihood of a continued upward trend.
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