In the 11+ years I have been advising sites with traffic drops I have seen many recoveries, but not all sites can recover. The best cases have been websites that have a legitimate business presence even outside of Google. It is easier to demonstrate E-E-A-T when you have a clearly recognizable brand with an existing audience.
There are some cases that make me worry that recovery is not possible. I am concerned if any of the following are true for you:
If link building has been your main driving strategy.
If you have content that simply answers questions searchers may have. AI chat will make ranking for these queries difficult unless you are known as the go-to source on your topics.
I will give you an honest assessment of whether recovery is likely.