Avalanche (AVAX) is currently trading at $8.85 on Friday, Feb 13, showing a decrease of 0.55% in a day, according to CoinMarketCap data. The trading volume has been declining by 8.45% and currently stands at $250.6 million. The AVAX coin price has increased by 2.02% over the past seven days.
Source: CoinMarketCap
AVAX Starts Early Wave 2 Recovery
Crypto Patel, an analyst, highlighted that AVAX has been creating a structure of the Elliott Wave pattern on the weekly chart. The formation of the pattern has been taking place within a multi-year descending channel, which began after the formation of the all-time high in the year 2021. AVAX has completed a 95%+ cycle correction from previous highs.
The first wave of the pattern, Wave 1, has been completed at a price of $5.67. According to the analyst, the cryptocurrency has started the early stage of the second wave, Wave 2, which represents a recovery period.
This period represents a high-time-frame zone, where the price of the cryptocurrency has reacted around the support level.
The cryptocurrency has broken down and retested the lower trendline, indicating a bearish breakdown and retest. The token has swept the liquidity into a demand zone between $8 and $7 on the weekly chart.
Source: X
Crypto Patel said that the cryptocurrency has been forming a repeating fractal, indicating a structure of compression, which has been a part of the previous cycles.
Patel provided several targets, including $33, $58, $97, and $147. The positive outlook would be valid as long as AVAX holds above $5.50. A weekly close below $5.50 would invalidate the wave structure.
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Open Interest and Volume Slip Further
CoinGlass data shows a decrease in activity. The volume has declined by 4.83% and now stands at $538.86 million. In addition, the open interest has fallen by 0.23% to $396.28 million. The OI-weighted funding rate is at 0.0046%, suggesting balanced positioning.
Source: CoinGlass
RSI and MACD Signal Ongoing Weakness
The Relative Strength Index (RSI) for AVAX is at 32.47, while the signal line is at 29.31. This asset is in a weak position, indicating bearish pressure for the day. This shows the asset has poor buying strength.
Meanwhile, the Moving Average Convergence Divergence (MACD) line for AVAX is at -0.99, while the signal line is at -0.98, and the histogram is near -0.01. This shows the bearish momentum for the asset, although the lines are closer, indicating a decrease in bearish pressure.
Source: TradingView
AVAX holds above the support level, although the indicators are weak. Analysts are looking for the Elliott Wave structure, indicating the asset might be on the path to recovery. Market direction now depends on sustained weekly strength and stability near support.
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