Is Avalanche Doomed to Correct?

The price of Avalanche (AVAX) is facing further drawdown and potential correction, with investors not expecting a rally in the near future. The altcoin is currently trading under $40, following corrections and a minor recovery in recent days. However, the first Death Cross in nearly a year has occurred, signaling a potential downward trend for AVAX.

The bearish sentiment is further supported by the weighted sentiment among investors hitting a two-month low and lack of bullishness among AVAX holders. This could lead to Avalanche’s price dropping to $27, with a potential decline to $29 if the $33 support level is breached.

The Average Directional Index (ADX) also indicates a bearish outcome for AVAX, with further decline potentially seeing the price touching $27. However, if market cues turn bullish and the uptrend gains strength, breaching the $44 resistance could invalidate the bearish thesis and send the altcoin higher.

Investors are advised to conduct their own research and consult with a professional before making any financial decisions, as market conditions are subject to change.