#Avalanche ($AVAX ) Analysis: This Death Cross Could Extend the Correction
Avalanche (AVAX) is one of the few altcoins currently signaling a potential further decline rather than a recovery.
Compounding the challenge for the altcoin is the lack of optimism among AVAX investors regarding a price rally.
Is Avalanche Destined for Correction?
- As of the latest update, Avalanche's price hovers below $40, following recent corrections and a minor uptick over the past few days. While there are hopes for a resurgence in the market, such sentiments are not mirrored in AVAX.
Investors' skepticism arises from Avalanche's first Death Cross in nearly a year. This bearish signal occurs when the short-term 50-day EMA crosses below the long-term 200-day EMA, indicating a potential downtrend. This lack of optimism among investors compounds the bearish sentiment.
The weighted sentiment, which has been on a downward trajectory for the past month, hit a two-month low due to the sudden price decline. The absence of bullishness among AVAX holders has added pressure on the price, potentially leading Avalanche to target $27.
AVAX Price Outlook: Anticipating Further Downturn
- With Avalanche's price currently at $37, it is poised to retest the support level at $33, which held firm during the recent correction. However, if this support level is breached, coupled with prevailing bearish market signals, AVAX could experience a drop to $29.
The Average Directional Index (#ADX ) also suggests a bearish outlook for the altcoin. An ADX reading above the 25.0 threshold typically indicates that the prevailing trend, in this case, a downtrend for AVAX, is gaining strength. Consequently, further decline could see Avalanche's price reaching as low as $27.
The ADX signals a bearish trend for AVAX, possibly dropping to $27. However, a bullish market could reverse this, pushing AVAX higher if it breaks $44 resistance.
Source - beincrypto.com