On September 4, the trading price of Cardano (ADA) recorded a strong rally that was able to push its price. On that particular day, Cardano’s trading price jumped over the 50-day SMA.
Cardano Jumped Over $0.49
In September, the trading price of Cardano crossed $0.49, which was the 50-day SMA for the digital asset.
As the trading price of Cardano jumped over the 50-day SMA, the bulls tried hard to push its price higher. Despite the constant buying efforts of the bulls, they were not able to push its price higher.
Bears Prevailed over the Bulls
The bears continued selling Cardano on a higher scale in order to meet the buying power of the bulls. At a certain point, their selling power superseded the buying power of the bulls.
This caused the trading price of Cardano to fall below the 50-day SMA. This was an indication that the bears were not going to let the bulls run the trend.
This showed that the bears started to sell Cardano on a higher scale in order to kill the rally. This is not the first time Cardano has recorded such a trend.
Instead, the trend has been ongoing for a while where the bears are selling ADA whenever the bulls form a rally. This way, they are able to dip the price of Cardano so the trend continues and a cycle is formed.
Tactic Used by the Bears
As the bears have pulled Cardano’s price below the 50-day SMA, they are now aiming to inflict a low blow to the bulls.
The data suggests that the bears may not let the bulls carry on with their buying efforts. They may try and end the trend with strong selling and not let the bulls form a rally anymore.
An attempt by Bears to Pull Cardano down to $0.42
The technical analysis for Cardano suggests that the trading price of Cardano is soon to fall below the 20-day EMA. At present, the $0.47 mark represents the 20-day EMA for Cardano and the bears may attempt to pull ADA below the particular mark.
If the bears succeed in pulling ADA’s price lower, they may attempt to pull its price below $0.44. If the bulls fail to form a strong rally and take out the bears, then the trading price of ADA may fall below $0.42.
On the other hand, as the implementation date of the Vasil upgrade comes closer, the bulls may gain more confidence. With such sentiments, the bulls may be able to fight off the bears.
This would eventually help push the trading price of Cardano higher. As the momentum keeps growing stronger, then the trading price of ADA may surge over $0.51.