$ZRO /USDT

In trading, identifying support and resistance levels is crucial for making informed decisions. These levels act as psychological barriers where the price of an asset tends to reverse or pause in its movement.

Support is a price level where demand is strong enough to prevent the price from falling further. At support, buyers typically outnumber sellers, halting the downward momentum. Traders often buy near support with the expectation that the price will bounce upward. However, if the price breaks below this level, it can indicate a stronger selling trend.

On the other hand, resistance is where selling pressure outweighs buying pressure, preventing the price from rising. Traders usually sell near resistance, anticipating the price will fall from that point. If the price breaks above the resistance level, it can signal strong upward momentum, attracting more buyers.

Spotting support and resistance levels can be done by analyzing past price action, using trendlines, or applying technical indicators like moving averages. Mastering these concepts helps traders optimize their entry and exit points, manage risk effectively, and enhance profitability in both upward and downward markets.

#DODOEmpowersMemeIssuance #CATIprediction #BTCReboundsAfterFOMC #FOMC #NeiroOnBinance