A support level in trading is a price point at which there is historically a higher likelihood of buying activity, resulting in the price of the asset being supported from falling further. When considering an exit strategy, understanding the significance of a support level is crucial. If a trader has bought an asset and the price has reached a support level, they may choose to exit their position if the support level is breached. This is because a breach of the support level could indicate that the buying pressure that was previously keeping the price from falling further has weakened or disappeared, potentially leading to a significant price drop. By exiting their position at this point, the trader can limit their losses and potentially avoid a more significant downturn in the market. However, it is important to note that a support level should not be the sole factor in making an exit decision, and other technical and fundamental indicators should also be considered.