#CryptoCharts101 Why should you understand charts?

One of the most important tools that any trader should understand are support and resistance lines. These lines are used to identify levels at which the price often bounces back, either up or down.

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