A 3-period simple moving average (SMA) can rise even when the latest price falls, because a new value enters the average and an old one drops out.

Suppose hypothetical closing prices are 80, 100, and 110 in order. The 3-period SMA is 96.67. Now suppose the next closing price is 105. The price has fallen from the previous 110, but the new sample is 100, 110, and 105. Since the older value of 80 drops out, the average rises to 105. Both comparisons are true: 105 is less than 110, and 105 is greater than the removed value of 80.

You can also check how much the average changed. Subtract the old average from the new average, and the two closing prices that remain, 100 and 110, cancel each other out. So the change in the average is (new value 105 − removed value 80) ÷ 3 = about 8.33. The drop from the previous closing price of 110 to 105 and the change in the average are different comparisons.

So reading “the average line is rising = the price just rose” mixes up the intervals. An average summarizes several past values, while the latest price change compares only two points in time. And a price being above the average is no guarantee that the average will keep rising. When the average line on a chart moves in an unexpected way, write down the period, the price used, and the values being added and removed separately.

Reference for the official concept

Binance Academy — Moving Averages Explained

https://www.binance.com/en/academy/articles/moving-averages-explained