$INJ /USDT

In trading, understanding "support" and "resistance" levels is crucial for making informed decisions. Support refers to a price level where an asset tends to find buying interest, preventing it from falling further. It's a zone where demand is strong enough to halt a downward trend and potentially spark a price reversal. Think of it as a floor beneath the price. When the price approaches this level, buyers often step in, which can cause the price to bounce back up.

On the flip side, resistance acts as a ceiling, marking a price level where selling pressure intensifies, preventing the price from rising further. At resistance levels, supply tends to outpace demand, leading to a price reversal downward.

These levels can be identified using various methods such as technical indicators, previous price action, or psychological price points like round numbers. Traders use support and resistance to plan their entry and exit strategies. A breakout occurs when the price moves decisively through support or resistance, signaling potential continuation in that direction.

In essence, support and resistance help traders gauge market sentiment, identify potential reversals, and time trades more effectively. Understanding these levels is key to mastering market dynamics and reducing trading risks.

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