$IRIS /USDT

Support and resistance levels are crucial concepts in technical analysis, used by traders to identify potential turning points in the price movement of an asset. Support refers to a price level where a downtrend can be expected to pause due to a concentration of demand. At this level, buyers are more likely to step in, preventing further declines. On the other hand, resistance is a price level where an uptrend may pause or reverse due to a concentration of selling pressure. Sellers become more dominant here, preventing further price increases.

Spotting these levels involves analyzing past price patterns. Support is typically identified by looking for a series of lows where prices have rebounded in the past. Similarly, resistance is spotted by noting highs where prices have previously struggled to break through.

Once identified, traders use these levels to make informed decisions. For instance, if the price approaches a support level, a trader might consider buying, anticipating a bounce. Conversely, if the price nears a resistance level, selling or taking profits might be prudent.

Breaking through support or resistance can signal a significant shift in market sentiment, often leading to new trends or stronger price movements.

#BinanceLaunchpoolCATI #BinanceLaunchpoolHMSTR #FTXSolanaRedemption #GrayscaleXRPTrust #DOGSONBINANCE