After a brutal drawdown of more than 95% from its 2021 peak, Avalanche (AVAX) is beginning to show technical signals that could mark a major macro turning point — and traders are paying attention. Why it matters - AVAX has been locked in a multi-year descending channel since the 2021 all-time high. That long-term downtrend has kept bulls at bay for years, but the weekly chart is now registering a structure consistent with an early-stage reversal. - Crypto analyst Crypto Patel argues the token completed Wave 1 of an Elliott Wave sequence with a macro low near $5.67, and is now entering an early Wave 2 recovery. If true, this phase often sets the tone for whether a sustained expansion follows. What the charts show - Weekly Elliott Wave structure: Wave 1 appears to have bottomed in the $8–$5 range, establishing a potential base. - Price action features a bearish breakdown followed by a retest of the lower trendline — a classic deviation/retest setup. - The chart also recorded a liquidity sweep into the weekly demand zone between $8 and $7, which can be a common precursor to trend reversals. - The broader fractal picture mirrors the compression seen before the last cycle’s expansion, suggesting the market may be building energy for a move higher — but confirmation is needed. What would confirm the thesis - Crypto Patel highlights that sustained weekly strength and a push back toward mid-channel resistance would bolster the bullish Wave 2 case. In short: weekly closes with real momentum higher, not just volatile chop, are required to validate a larger recovery. Upside roadmap and risk levels - Target sequence (as outlined by Crypto Patel): $33 → $58 → $97 → $147. If channel expansion unfolds into 2026–2027 and price reaches the upper boundary, this path from the macro bottom to the final target would imply an approximate 2,489% expansion. - Key invalidation level: a weekly close below $5.50 would break the Wave 1 low and invalidate the current recovery scenario, signaling renewed structural weakness. Bottom line Avalanche is showing early technical clues of a high-timeframe inflection after a severe cycle correction. The setup offers a high-asymmetric risk/reward for spot accumulators and long-term holders — but it is a patience-driven, confirmation-dependent trade. Watch weekly strength and the $5.50 support level; a sustained move toward mid-channel resistance would be the clearest sign that the larger recovery is starting to take shape. Read more AI-generated news on: undefined/news

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