Market Supply

Market supply is the aggregate willingness of market participants to sell their holdings of an asset at various prices. In the order book, this is visible as the ask side, where sellers have placed their limit orders.

High supply typically exerts downward pressure on prices, as sellers compete to find buyers. Monitoring supply is essential for those looking to exit positions or enter short trades.

It allows traders to identify resistance levels where selling interest is likely to be strong. Combined with demand, it creates the essential balance that sets the market price.