AVAX price followed the broader market’s lead, as the altcoin posted a red candle on the chart on Wednesday. The extremely high volatility in the crypto market is the result of the ongoing banking crisis in the United States as well as the rally noted by the market following the release of the Consumer Price Index (CPI) on Tuesday.
AVAX price, after failing to breach the immediate resistance level at $17.20, noted a decline over the last 24 hours. Trading at $15.67, the cryptocurrency slipped closer to the critical support level of $14.91 at the time of writing.
By the looks of it, a decline is what is expected out of the altcoin, however, looking at the price indicators, it becomes apparent that the correction was necessary to initiate a sustainable recovery.
The Relative Strength Index (RSI) observed an uptick near the neutral line at 50.0, the flipping of which into support would indicate a likely rise in price.
Similarly, the Moving Average Convergence Divergence indicator is still in the early stages of a bullish crossover. The hints of the same can be observed on the histogram where green bars are making an appearance.
Thus if the bullish narrative plays out, AVAX price could note a recovery rally to $17.20. Flipping this level into a support floor would also push the altcoin above the critical resistance level.
A rally above this level would result in Avalanche rising toward a monthly high of $19.60, marking a 25% increase as well as testing the 200-day Exponential Moving Average (EMA).
AVAX/USD 1-day chart
But on the off chance that the macroeconomic conditions worsen the panic in the market, traders and investors can expect further declines. Slipping below the critical support level at $14.91 would invalidate the bullish thesis and push AVAX price to December 2022 highs of $13.78.
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