AVAX in wave analysis: triple zigzag and running wave

AVAX analysis reveals the formation of a complex corrective structure on higher timeframes. A running wave plays a key role in this movement, creating a specific pattern that differs from standard correction models. The current price action is developing around critical support levels based on Fibonacci ratios.

Multi-level correction structure and the role of the running wave

It has been established that AVAX forms a triple zigzag on a high timeframe. In-depth analysis of smaller timeframes reveals minor fractals of this corrective structure. The running wave in this context represents a non-standard movement, where the correction occurs in the direction of the previous impulse, creating a unique pattern on the chart.

Currently, the price is held at support at the 1.272 wave W level, which may indicate a reversal point. However, the 1.618 ratio (calculated as wave W × 0.618) remains a more probable correction target. Nevertheless, signals on lower timeframes suggest the possibility of forming another level of this structure before a final rebound.

8-hour chart analysis: completion of correction and impulse resumption

On the 8-hour timeframe, the ABC correction has already been completed, and the price action has turned downward impulsively. The main trend has resumed its movement, forming a new phase of downward movement. At this moment, the price is in the Golden zone (range 0.618-0.786) of the wave B correction, simultaneously positioned in a high liquidity zone.

The current price placement raises questions about the nature of the upcoming movement: will it be a reversal with the formation of a new trend or a continuation of the existing correctional structure? The answer depends on how the price interacts with supports and resistances at this level.

Hourly chart: exotic forms and wave sequence

On the hourly interval, an exotic expanded running flat pattern has formed, potentially marking wave 2 or a higher-order wave B. This non-standard structure preceded an impulsive five-wave downward movement with a truncated fifth wave.

Following this impulse, an ABC correction upward occurred, which can be viewed as the start of a new corrective phase. The current scenario suggests that the price is in the middle of a zigzag correction, awaiting confirmation of wave 2 of a potential five-wave impulse downward. The running wave in this context may reflect an uncommon type of movement, where the direction develops contrary to traditional expectations.

Critical levels and target zones for correction

The invalidation level for the hypothesis of the triple zigzag completion is set at $12.49. Surpassing this level would indicate that the high timeframe structure has completed formation at the 1.272 wave W ratio.

If the price continues downward from current levels, the 1.618 ratio of wave A represents the most common correction zone. On the hourly chart, the 1.272 ratio also serves as a potential support level, although it is less common than 1.618.

Current AVAX data (update from January 30, 2026): the price is at $10.91 with a daily change of -1.08%, consistent with expectations for the current correction phase.

This material is for educational purposes only and does not constitute trading advice. The analysis is based on standard wave analysis tools and Fibonacci ratios applied to the AVAXUSDT pair.