$CLV /USDT
Spot and resistance are key concepts in technical analysis, widely used in trading and investing to identify potential price movements.
Spot price refers to the current market price at which an asset can be bought or sold for immediate delivery. Itâs constantly changing based on supply and demand. Traders use the spot price as a baseline for decision-making, especially in fast-moving markets like stocks, forex, and commodities. It reflects the real-time value of an asset and is crucial for short-term traders who rely on quick movements.
Resistance is a price level where an assetâs upward movement is expected to face selling pressure. It acts as a psychological barrier, preventing further price increases as traders take profits or close positions. Once the price reaches a resistance level, thereâs typically a high volume of sellers, causing the asset to lose momentum. However, if the price breaks through this level, it may signal a bullish trend, and the resistance could turn into a new support level.
In summary, while the spot price provides the current value of an asset, resistance levels help traders predict where prices might stall or reverse, making both essential for effective trading strategies.
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