When you look at a crypto chart, youโll often hear traders talk about Support and Resistance.
But what do these terms actually mean?
๐ข What is Support?
Support is a price area where buying interest may increase, making it harder for the price to move lower.
Think of it as a potential floor.
๐ด What is Resistance?
Resistance is a price area where selling pressure may increase, making it harder for the price to move higher.
Think of it as a potential ceiling.
๐ They are zones, not exact prices
One important thing to understand:
Support and resistance arenโt always a single price point.
Theyโre better viewed as zones where price has previously shown stronger buying or selling activity.
Thatโs why price can move slightly above or below a level without automatically invalidating it.
๐ When levels switch roles
A support zone can later become resistance.
For example:
Support โ Price breaks below โ Retest โ Resistance
The opposite can happen too:
Resistance โ Price breaks above โ Retest โ Support
This is often called a support-resistance flip.
The simple takeaway
Support = potential floor
Resistance = potential ceiling
They can help you understand how price has behaved around certain areas, but they donโt guarantee that price will hold or reverse.
๐ Want to go deeper? Learn more through Binance Academy.
Educational content only, not financial advice. DYOR and use official Binance sources.