📐 $CHIP breaks through the 0.06 level.
[Term explained] Why do round-number levels matter?
There are often quite a few stop-loss orders clustered around these levels. If the price moves past one, those stops may be triggered all at once, often causing volatility to spike suddenly.
The first rebound after a level is lost is often seen as a test: if the price is turned back near the level, that lends support to the idea that support has turned into resistance.
Comparing several indicators is more reliable than looking at just one, but even more signals can’t provide a definitive answer.
[Term explained] Why do round-number levels matter?
There are often quite a few stop-loss orders clustered around these levels. If the price moves past one, those stops may be triggered all at once, often causing volatility to spike suddenly.
The first rebound after a level is lost is often seen as a test: if the price is turned back near the level, that lends support to the idea that support has turned into resistance.
Comparing several indicators is more reliable than looking at just one, but even more signals can’t provide a definitive answer.