A resistance level is a price point on a chart where an asset, such as a stock or cryptocurrency, tends to stop rising and may reverse direction. Traders believe that at this level, selling pressure increases as many investors choose to sell their holdings, preventing the price from moving higher. This concept is important in technical analysis, where traders use charts to identify potential entry and exit points. When the price approaches a resistance level, it can signal a good opportunity to sell or short the asset, as it may struggle to break through that barrier.