Resistance
Price zone where supply prevents further upward movement.
Beginner-friendly explanation
A resistance is a price level where the market struggles to go higher. It’s often where many sell, stopping the upward move.
Example:
Ethereum climbs to $2,000 but fails to go higher. Each time it hits that level, it falls back — $2,000 is a resistance.
Intermediate-level insight
A resistance forms when an asset gets rejected multiple times at the same level. It can be horizontal or sloped downward. Traders use it to place sell orders or stops.
Example:
BTC tried to break $30,000 three times but failed. That level is a strong short-term resistance.
Advanced perspective
Resistance is a zone with concentrated sell orders. It’s reinforced by technical confluences (Bollinger Bands, volume ratios, market profile nodes). When broken with volume, it may turn into support.
Example:
ADA breaks a resistance at $0.42 with a bullish breakout and 3x volume, confirming a potential reversal.
Markets & Order Types
resistance, rejection, sell zone, ceiling, breakout, reversal, indicators, volume, market profile