Understanding Support and Resistance

In the dynamic world of cryptocurrency trading, mastering the concepts of support and resistance can significantly enhance a trader's ability to make informed decisions and navigate the volatile markets effectively. Binance, one of the world's leading cryptocurrency exchanges, provides a fertile ground for traders to apply these fundamental concepts.

What are Support and Resistance ?

Support and resistance are essential technical analysis tools used by traders to identify potential price levels where the market is likely to react.

Support : This is a price level where a cryptocurrency asset tends to find buying interest, preventing it from falling further. It acts as a floor for the price, as buyers see value in purchasing the asset at that level, leading to an increase in buying pressure.