2026-01-18 02:35:17

When the price returns to a support level, it should show a strong reaction. If it moves sideways just above the support, those support levels are at risk of breaking. The same dynamics apply to resistance levels. If the price moves sideways as it approaches the resistance zone, the likelihood of a breakout is high. However, if a rapid wave of selling occurs immediately upon reaching resistance, that resistance level does not break. These types of price action signals are critical in technical analysis for determining entry and exit points.

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DefiEngineerJack

· 4h ago

well *actually* this is just basic support/resistance 101 but most traders still get it wrong lmao. the price action nuance here is non-trivial tho — lateral consolidation above support literally screams capitulation incoming. been seeing this pattern on every altcoin chart lately ngl

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SelfMadeRuggee