$USTC /USDT

In trading, support and resistance are key concepts that help traders understand potential price movements of an asset. Support refers to a price level where a downtrend can be expected to pause due to a concentration of demand. When an asset's price approaches this level, buyers typically step in, preventing it from falling further. It's like a floor that the price tends to bounce off.

On the other hand, resistance is a price level where a rising asset faces selling pressure, halting its upward momentum. This acts as a ceiling, where the price has difficulty breaking through. Traders often watch these levels closely, as they can indicate potential entry or exit points.

Spotting support and resistance can involve looking at past price action, technical indicators, or psychological price levels. When these levels are broken, it can signal a shift in market sentiment. A break below support may suggest a bearish trend, while breaking through resistance can indicate bullish momentum.

Mastering support and resistance is essential for making informed trading decisions, as it helps identify market conditions and potential opportunities for profitable trades.

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