$MANTA /USDT

Spot and Resistance in Trading

In trading, understanding spot price and resistance levels is essential for making informed decisions. The spot price is the current market price at which an asset is bought or sold for immediate delivery. It represents the most up-to-date valuation of an asset, based on supply and demand dynamics. Spot prices are crucial for traders as they provide real-time insight into market trends and opportunities.

Resistance, on the other hand, is a key technical analysis concept. It refers to a price level where an asset faces selling pressure, preventing it from rising further. Traders observe resistance levels because they often indicate a potential reversal or slowdown in price movement. If the price consistently fails to break through this level, it can signal the market's reluctance to push higher, making it a possible selling point.

However, if an asset's price breaks above a resistance level, it can signal a bullish trend, as it suggests increasing demand and buyer confidence. Traders often look for these breakouts to capitalize on upward momentum.

By understanding spot prices and resistance, traders can better anticipate market movements and adjust their strategies accordingly, whether looking to buy at a favorable price or sell before a reversal.

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