The trading price of Cardano (ADA) had been trying to hold its own above the $0.32 level (20-day EMA). The data recorded on December 5 showed that the trading price of ADA had been hovering over the $0.32 mark.
Despite the efforts, the bulls were not able to keep the price of ADA over the 20-day EMA. The bears increased their selling pressure and they proved that they were ruling the trend.
ADA Price Fell Below $0.32
For days, the bulls kept trying to push ADA much higher than the 20-day EMA level but it was in vain. The bears did not let the bulls build enough momentum as they kept selling ADA at a higher level.
Over the next few days, the bears continued increasing their selling pressure, which eventually helped them pull ADA’s price lower.
The bears successfully pulled the trading price of ADA below the $0.32 level. As a result, the investors with strong sentiments were forced to liquidate their holdings.
They avoided sustaining any losses and ended up selling the tokens in their possession for short-term gains.
The report suggests that many short-term positions had been closed and many fresh short positions had been formed. This means that the investors are still aiming to go for short-term gains.
They are not planning to go for long-term positions as they do not think the rallies would continue for long. Given the current market sentiments, it is almost impossible for any rally to stick around for a while.
Bulls to Try and Pull ADA Down to $0.20
The data shows that the bears did not let the bulls win the fight at $0.32 and they pulled it lower than the $0.30 mark.
Even at the time of writing, ADA’s price is hovering around the $0.30 level but the bears are aiming to pull its price lower.
The RSI is also in line with the bears as it has also started to travel in the bearish zone. With the technical factors supporting the downward movement, it is only a matter of time before the bears launch their attack.
As they attack, their attempt would be to bring the trading price of ADA to a low of $0.29. This would give them another opportunity to show off their selling power.
With the selling sentiments gaining momentum, the trading price of ADA may fall to a low of $0.25.
At this point, the $0.29 level would start acting as a strong resistance mark, which would be difficult for the bulls to revisit anytime soon.
From there, if the bears keep increasing their selling pressure, then the trading price of ADA may fall below $0.20.