Supply Zone Pressure

Definition ∞ Supply zone pressure is the downward force on an asset’s price caused by a high concentration of sellers at certain price levels. This describes a market condition where a significant volume of an asset is available for sale at or above current price points. This often comes from investors seeking to exit positions or realize gains. This excess supply can impede price appreciation and may lead to price declines if demand does not absorb it.
Context ∞ Supply zone pressure is a critical factor influencing cryptocurrency price movements, often discussed in market analysis when an asset struggles to break above certain thresholds. News reports frequently attribute price consolidations or pullbacks to such pressure. This indicates a period where sellers outnumber buyers in specific price ranges.