Avalanche (AVAX) price is showing early signs of recovery after weeks of sustained downside pressure, with the price now stabilizing near a critical demand zone around $6. The recent bounce has helped AVAX form a compression structure just below a key resistance zone, hinting that volatility expansion could be approaching. While buyers are gradually stepping in and absorbing supply, the market remains at a decisive point, where a breakout could open the door for a move toward higher liquidity zones near $9.