A supply wall represents a significant concentration of sell orders for a particular digital asset at a specific price level. This indicates a substantial amount of the asset available for sale at that point, which can act as a resistance level, impeding upward price movement. Overcoming a supply wall typically requires substantial buying pressure to absorb the available sell orders.
Context
The concept of a supply wall is frequently discussed in the context of token unlocks or large holder distributions, where a considerable quantity of an asset becomes available on the market. Traders and analysts monitor these supply walls to anticipate potential price ceilings and gauge the strength of buying interest. The ability of demand to absorb these large sell-offs is a critical determinant of an asset’s price trajectory.
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