#CryptoCharts101 One of the most important tools that any trader must understand is support and resistance lines. These lines are used to identify levels at which the price often bounces, whether upwards or downwards.

Take the example of the $SOL coin. When looking at the daily chart, we notice that the price has bounced several times from a strong support area at $130. Each time the price reaches this level, demand increases and the coin rises. Conversely, we find strong resistance at $160, where sellers begin to push the price down.