Let's talk about the two old rivals: Resistance and Support — the yin and yang of the trading world. Let's slice through the fog:
1. Resistance
What it is: A price level where an asset struggles to go higher.
Why it happens: Traders sell when the price reaches this level, fearing a pullback or wanting to take profit.
Think of it like: A ceiling that the price keeps hitting its head on.
Example: $PEPE keeps getting slapped down around $0.00000790 — that’s resistance.
2. Support
What it is: A price level where an asset stops falling and starts to bounce.
Why it happens: Traders buy at this level, thinking it's a good deal or the price won’t go lower.
Think of it like: A floor that catches the falling price.
Example: If $WIF bounces every time it hits $0.84 — that’s support.
Visualize it like a battlefield:
Bulls (buyers) charge upward — hit resistance, retreat.
Bears (sellers) push downward — hit support, pull back.
When resistance is broken, it can become support — and vice versa.
