After 95% Crash, Avalanche Forms High-Timeframe Reversal Structure
After enduring a brutal 95%+ drawdown from its 2021 peak, Avalanche is now displaying early indicators of a possible high-timeframe reversal. With worth stabilizing at macro support and forming an rising Elliott Wave construction on the weekly chart, the present part might mark a essential turning level within the broader cycle.
Weekly Elliott Wave Structure Signals Macro Inflection
AVAX is at present forming an Elliott Wave construction on the weekly chart, buying and selling inside a large descending channel that has remained intact because the 2021 all-time high. The broader construction suggests the asset remains to be working inside a long-term corrective part, however key technical signals now level to a possible higher-timeframe inflection level.
According to Crypto Patel, after enduring a brutal 95%+ cycle correction, Avalanche seems to have accomplished Wave 1 with a macro low close to $5.67. Price is now transitioning into the early phases of a Wave 2 restoration part, a essential second within the Elliott Wave sequence that always determines whether or not a sustainable growth part can comply with.
Structurally, the weekly chart reveals a number of notable developments. Wave 1 appears to have finalized inside the $8–$5 macro bottoming zone, establishing a possible base of assist. At the identical time, worth continues to commerce inside the long-term descending channel that has outlined the broader downtrend.
Technically, the chart displays a clear bearish breakdown adopted by a retest of the decrease trendline, a basic deviation setup. Additionally, AVAX executed a liquidity sweep into the weekly demand zone between $8 and $7. Meanwhile, the general fractal construction additionally mirrors the compression part seen within the earlier cycle earlier than growth.
For affirmation, Crypto Patel emphasizes the necessity for sustained weekly energy and growth again towards mid-channel resistance. A decisive push in that path would strengthen the bullish Wave 2 thesis and sign that the bigger restoration construction is starting to unfold.
Avalanche Upside Roadmap: $33 To $147 In Focus
CryptoPatel outlines an formidable upside roadmap for Avalanche, projecting sequential targets at $33, $58, $97, and finally $147. Should the broader channel growth situation play out into 2026–2027, worth might development towards the higher boundary of the multi-year descending channel. From the macro backside to the ultimate target, that might symbolize an estimated 2,489% growth.
The bullish thesis stays intact so long as Avalanche holds above $5.50 on a weekly last assist, which marks the Wave 1 low and final main structural assist. Maintaining this stage preserves the higher-timeframe restoration construction and retains the Wave 2 continuation situation in play.
However, a confirmed weekly shut beneath $5.50 would invalidate the setup and sign structural weak spot. As it stands, this stays a high-timeframe, patience-driven alternative with uneven risk-to-reward, a framework finest suited to spot accumulation and long-term holders.
