AVAX Analysis... Early signs to watch for.

Avalanche is trying to build a base after the sharp selloff, but the market structure has not fully turned bullish yet.

The first potential CHOCH came from the strong reaction off the lows and the recovery back above local support. However, AVAX still needs to break and hold above the recent swing highs near the lower edge of the overhead supply zone before that structural shift is confirmed.

Price is currently consolidating around a major volume area, showing that buyers and sellers are still fighting for control. Holding the current range and forming another higher low would strengthen the bullish case. A confirmed breakout could open the door for price to move deeper into the large imbalance and supply zone above.

The Synergy Signal oscillator is forming rising lows, showing improving underlying momentum. However, some shorter-term readings are becoming extended, so a pullback or liquidity sweep could happen before another push higher.

Bullish confirmation comes from reclaiming the recent range highs with volume. Losing the current support structure would weaken the recovery and place the major lower support zone back in focus.

For now, AVAX looks like an early recovery setup, but confirmation is still needed before calling it a complete trend reversal.