In technical analysis, support and resistance are price levels that are expected to hold, causing the price to bounce back in the opposite direction. Support is a price level where a downtrend is expected to pause due to a concentration of demand. Resistance is a price level where an uptrend is expected to pause temporarily, due to a concentration of supply.
The horizontal lines on the chart are common ways to represent support and resistance levels. The line at 22,100,000 TRY is a potential support level. The price dipped below this level briefly around 00:54 UTC on March 19, 2024, but then quickly rose back above it. This suggests that there may be buying interest at this level, as traders believe that the price is unlikely to fall much lower.
The line at 22,900,000 TRY is a potential resistance level. The price approached this level around 18:00 UTC on March 18, 2024, but then turned lower. This suggests that there may be selling pressure at this level, as traders believe that the price is unlikely to rise much higher.
It is important to note that support and resistance levels are not always exact. The price can sometimes break through a support or resistance level, especially if there is enough buying or selling pressure. However, support and resistance levels can still be a useful tool for identifying potential turning points in the market.
Here are some additional things to keep in mind about support and resistance:
Support and resistance levels are more likely to be valid if they have been tested multiple times.
The stronger the trend, the less likely it is that a support or resistance level will be broken.
Support and resistance levels can be broken if there is a significant change in news or sentiment.
