Definition
Support is a technical analysis concept that refers to a specific price level where a cryptocurrency’s downward movement tends to pause or reverse. At this level, demand from buyers is typically strong enough to counteract selling, making it harder for the price to fall further. Support is usually identified by looking at past price action and noting where declines have repeatedly stopped.
Support levels can appear as horizontal lines on a chart or as sloping lines if the market is trending. When price approaches support, it often reflects an area where many market participants previously considered the asset attractive to buy. If the price clearly breaks below a well-watched support level, it can signal a shift in market sentiment and the potential formation of a new, lower support area.
In Simple Terms
Support is like a common “floor” price where a crypto asset has historically had trouble falling below. It marks a zone where many traders are willing to buy, which helps keep the price from dropping quickly. While support does not guarantee that price will hold, it highlights a level that has repeatedly attracted buying interest in the past.