Avalanche (AVAX) Just Flashed a Rare Reversal Signal Following Its 95% Crash

Little attention has surrounded Avalanche price in recent months. Many faster moving tokens dominate headlines, yet AVAX price now sits near a zone that deserves close study. Market quietness often appears near turning points, which makes the current structure more interesting than the lack of noise suggests.

A recent technical outlook shared by Crypto Patel places Avalanche at a critical high timeframe moment. The analysis outlines how AVAX completed a deep cycle correction near the $5.67 region after falling more than 95% from its previous peak.

That move may represent the end of a long Wave 1 decline inside a broader Elliott Wave structure on the weekly chart. Price action now attempts an early Wave 2 recovery, which often defines whether a market truly forms a macro bottom.

Weekly Avalanche Price Structure Shows Macro Support Holding Firm

Crypto Patel highlights a multi year descending channel that has guided Avalanche price behavior since the 2021 high. AVAX moved through a clean bearish breakdown before returning to test the lower boundary. That retest produced a deviation pattern followed by a liquidity sweep into the $8 to $7 demand zone. Such behavior often appears when stronger hands accumulate positions near structural support.

Chart symmetry also plays an important role in this view. The current compression mirrors a previous cycle pattern that preceded expansion. Repetition does not guarantee an outcome, yet recurring structures across cycles often provide useful probabilistic context. Weekly strength above the lower boundary now becomes the key signal that determines whether recovery can extend toward mid-channel resistance.

Crypto Patel maintains that bullish structure stays valid as long as Avalanche holds above $5.50 on a weekly closing basis. Loss of that level would invalidate the Wave 1 bottom thesis and reopen downside risk. Support stability therefore, becomes the single most important confirmation factor in the near term.

Elliott Wave Path Suggests Gradual AVAX Price Expansion Toward Higher Targets

Projected upside levels from Crypto Patel offer a roadmap rather than a promise. The path begins near $33, then extends toward $58 and $97 before a possible test near $147 if the broader Elliott structure unfolds into 2026 and 2027. Each level aligns with resistance zones inside the descending channel, which strengthens the technical logic behind the sequence.

Distance between the macro bottom and the highest projection represents a large percentage expansion. That figure illustrates asymmetric risk and reward conditions that long-horizon participants often monitor.

Patience remains essential because high-timeframe recoveries rarely move in straight lines. Pullbacks, consolidation phases, and sentiment swings typically shape the journey between accumulation and expansion.

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Independent chart observation supports several parts of this thesis. Momentum compression near long term support often precedes volatility return. Volume behavior near the lower boundary also hints at absorption instead of panic distribution. Confirmation still depends on sustained higher lows and weekly strength, which means structure matters more than short term price spikes.

Avalanche therefore sits in a quiet yet technically meaningful position. Crypto Patel frames the moment as an early recovery phase that could define the next major cycle direction. Market history shows that reversals often begin when attention disappears, not when excitement peaks.

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