The AVAX price experienced a significant slide in late February, slipping back to mid-January levels. The altcoin’s price has continued to decline in March, and it is now approaching a critical support level. The bulls must step in to prevent AVAX from falling below this level and to support the cryptocurrency’s recovery.
AVAX Price Bounces Back
The AVAX price was trading at $15.60 after a red candle on Wednesday, indicating a 6.6% decline that brought the cryptocurrency closer to the critical support level at $14.91. However, the altcoin bounced off this level on Thursday, registering a 3.42% rise. This could signal a potential recovery rally if buyers continue to support the cryptocurrency.
Uptick in RSI Signals Positive Outcome
The uptick noted in the Relative Strength Index (RSI) also suggests a positive outcome for the AVAX price. If the RSI bounces off the 30.0 mark without slipping into the oversold zone, it would prevent the cryptocurrency from declining below the critical support level. It would also enable the AVAX price to rise towards its immediate resistance at $17.20.
Traders Watch Resistance Level at $17.20
Traders should closely monitor the resistance level at $17.20. Flipping this level into support would enable the AVAX price to rally by 27% and breach the critical resistance level at $19.81. Traders looking to long the altcoin should consider placing their bets once this barrier is crossed, as it would also flip the 50, 100, and 200-day Exponential Moving Averages (EMAs) into support.
Conclusion
The AVAX price needs to rally to at least $14.91 to secure a sustained recovery. A recent uptick in the Relative Strength Index (RSI) signals a potential recovery rally, provided buyers step in to support the cryptocurrency. Traders should watch for AVAX to flip the resistance level at $17.20 into support to initiate a long position.
