🐋 $WAL fell below the 0.046 level.
A lot of orders tend to cluster around these levels, so let’s first understand how key price levels can come into play.
Round-number levels get attention mainly because traders tend to place orders and stop-losses near them. Orders often cluster there, which is why they’re also called psychological levels.
Round-number levels matter to different coins to different degrees: many traders watch major round-number levels for top coins, while round numbers are usually much less useful as reference points for smaller coins.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a single rule of thumb.
A lot of orders tend to cluster around these levels, so let’s first understand how key price levels can come into play.
Round-number levels get attention mainly because traders tend to place orders and stop-losses near them. Orders often cluster there, which is why they’re also called psychological levels.
Round-number levels matter to different coins to different degrees: many traders watch major round-number levels for top coins, while round numbers are usually much less useful as reference points for smaller coins.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a single rule of thumb.