$FLOKI /USDT

In financial trading, identifying support and resistance levels is crucial for making informed decisions. Support refers to the price level where an asset tends to stop falling, as buyers step in, creating demand that "supports" the price. On the other hand, resistance is where the price often stops rising, as sellers emerge, increasing supply, and "resisting" further price increases.

Recognizing these levels helps traders predict potential price movements. For instance, if the price of a stock repeatedly bounces off a certain support level, traders may see it as an opportunity to buy, anticipating that the price will rise again. Similarly, if a price hits a resistance level multiple times but fails to break through, it may be a signal to sell or short the asset, expecting a downturn.

Additionally, when prices break through these levels (known as a breakout), it can signal a strong shift in market sentiment. Breaking through resistance may indicate further upward momentum, while breaking below support could signal a downtrend. By spotting these levels, traders can improve timing, manage risk, and enhance overall strategy in dynamic markets.

#BinanceLaunchpoolHMSTR #BTCPredictedNewATH #BTCReboundsAfterFOMC #moonbix #CATIonBinance