Support Level

Support Level is a key concept in technical analysis. It refers to a price level where a cryptocurrency or fiat currency tends to find buying interest as it falls. This is because traders perceive it as a good entry point. When the price approaches this level, demand typically increases, halting further declines. If the support level is broken, it may indicate a shift in market sentiment. Identifying support levels helps traders make informed decisions and manage risk. It provides a foundation for predicting potential price movements.