For the Avalanche (AVAX) problem, it hints at the reduction of the death cross

Avalanche (AVAX) is among the few altcoins showing further decline in price recovery.

To make it more difficult for the altcoin, even AVAX investors do not expect a rally.

Is the Avalanche doomed to reform?

As of this writing, Avalanche is trading below $40, following corrections and a small recovery over the past two days. Although there are expectations of further price increases in the market, this is not the case with AVAX.

Because the altcoin is seeing its first death cross in a year. A death cross occurs when the short-term 50-day exponential moving average (EMA) crosses below the long-term 200-day EMA, indicating a downtrend.

It indicates bearish sentiment and is often considered a significant sell signal by traders. This is further confirmed by the sentiment of the investors, which is not optimistic at the moment.

The sentiment, which had been stomping down for the past month, hit a two-month low on the sudden drop in prices. A lack of bullishness among AVAX owners tends to hurt the price.

This may be due to the price of Avalanche, as the altcoin is keeping an eye on $27

AVAX Price Forecast: Further downtrend coming

The $37 Avalanche price trade is about to pull back to test the $33 support, which it failed to break during the recent correction. A loss of this support coupled with bear market signals would result in a decline to $29.

Average Directional Indicator (ADX) for altcoin also shows a bearish result. An indicator above the 25.0 threshold is usually a sign of the strength of an active trend, which in the case of AVAX is a downtrend.

Therefore, further declines will see the price of Avalanche touch the low of $27.

However, if broader market cues turn bullish and, rather than decline, the advance gains strength, AVAX could recover. A breach of the $44 resistance would break the bearish trend, which could send the altcoin higher.