AVAX price recovers slightly after 15% crash but remains stuck in 15-month consolidation

●AVAX price over the past month has shot up by 113%, and the first major decline on Monday was noted, falling by 15%.

●While price indicators are exhibiting mixed signals, the altcoin still has a chance at retracing its steps back to $20.

●This recovery, however, would be most likely short-lived as Avalanche is set to witness a $160 million token unlock event in nine days.

AVAX price was among the top performers during the recent bull run, but like every altcoin, Avalanche’s native token is also witnessing corrections and decline. Although this may seem like a one-time, isolated event, the chances are that a dip in value is right around the corner.

AVAX price to decline after recent highs

AVAX price noted a 113% rally in the past several months, which pulled Avalanche up from $8.75 to $19.16. However, this rally was followed by a major decline in the last 24 hours, during which the altcoin fell by more than 15%. 

The correction was most likely in response to the fake report of BlackRock issuing an XRP exchange-traded fund (ETF), which was denied soon after. But the decline nonetheless could have long-term impacts. However, the Moving Average Convergence Divergence (MACD) indicator is still exhibiting a bullish outlook.

The indicator used to test the strength of the asset is yet to signal a clear downtrend. While the fading green bars suggest waning bullishness, the MACD line (blue) is yet to fall under the signal line (red). A successful bearish crossover would hint at a bearish signal being confirmed, enabling a rise in prices.

Testing the $16 support line, AVAX price bounced back but failed to breach the $19.17 barrier. This confirmed that the 15-month consolidation is no less than a conventional resistance price. Nevertheless, the slow and strong partnership would enable the altcoin to prevent a decline. 

AVAX/USD 1-day chart, Source: TradingView.

However, if the cryptocurrency recovers and bounces back, it would have a shot at reclaiming 2023 highs. Until then, gradual recovery of the recent losses is most likely going to be the case. But a breach of the $19.17 resistance would invalidate the bearish thesis.