BULLISH 📈 : Avalanche forms high-timeframe reversal after 95% crash

Avalanche (AVAX) has shown signs of a potential recovery after a significant 95% drawdown from its 2021 peak. The asset is currently forming an Elliott Wave structure, suggesting a possible turning point in its broader cycle.

Key Technical Developments

AVAX is trading within a descending channel since the 2021 high, indicating a long-term corrective phase.
Wave 1 appears completed near $5.67, transitioning into a Wave 2 recovery phase, crucial for potential expansion.
The price is stabilizing in the $8–$5 support zone while adhering to the descending trendline.
A liquidity sweep occurred between $8 and $7, reflecting a compression phase similar to past cycles.
Sustained strength above mid-channel resistance is necessary for confirming the bullish Wave 2 thesis.

Potential Upside Targets

CryptoPatel projects targets at $33, $58, $97, and $147 if the channel expansion continues into 2026-2027.
This would represent an estimated 2,489% expansion from the macro bottom.

The bullish scenario depends on AVAX maintaining above $5.50 weekly support, which marks the Wave 1 low. A drop below this level would signal structural weakness, potentially invalidating the setup. This presents a high-timeframe opportunity with asymmetric risk-to-reward for long-term holders.