Avalanche (AVAX) is at a pivotal moment, testing the crucial $27 supply zone. Will this resistance hold, or can AVAX break out toward $36? Let’s dive into the key technicals and market dynamics shaping AVAX’s next move.
Avalanche (AVAX) Faces Make-or-Break $27 Supply Zone
The $27 level has been a stubborn barrier for AVAX since March 2025. This 3D supply zone represents a concentration of sell orders that have repeatedly rejected upward momentum. Key factors to watch:
- Historical Resistance: $27 has halted rallies multiple times, making it a critical battleground.
- Volume Signals: Increased trading volume suggests buyer accumulation, but confirmation requires a strong daily close above $27.
- Trendline Support: The May 2025 trendline remains intact, providing a foundation for bullish momentum.
AVAX Breakout Scenario: Path to $36
If AVAX clears the $27 hurdle, the next target is $36. Here’s what could drive the rally:
- Buyer Dominance: A confirmed breakout would signal strong buyer control, attracting more participants.
- Volume Follow-Through: Sustained high trading volume is essential to validate the breakout.
- Market Sentiment: Positive momentum could trigger FOMO (fear of missing out), accelerating the uptrend.
Potential Pullback to $17–$19: A Buying Opportunity?
If AVAX faces rejection at $27, a retracement to $17–$19 could offer a lower-risk entry. This consolidation phase aligns with typical crypto volatility patterns, where buyers often accumulate during dips.
Key Takeaways for Traders
- Patience is Key: Wait for a confirmed daily close above $27 before entering long positions.
- Risk Management: Set stop-losses below trendline support to protect against downside risk.
- Monitor Volume: Strong volume on breakout attempts increases the likelihood of sustained momentum.
FAQs: Avalanche (AVAX) Price Action
1. What makes the $27 level so important for AVAX?
The $27 zone is a 3D supply area where sell orders have historically clustered, making it a tough resistance level to break.
2. How can traders confirm a breakout above $27?
Look for a strong daily close above $27 with high trading volume to confirm buyer dominance.
3. What is the next target if AVAX breaks $27?
The next major resistance is at $36, though traders should watch for intermediate levels like $30.
4. Is a pullback to $17–$19 likely?
Yes, if $27 holds as resistance, a retracement to $17–$19 could provide a healthier consolidation phase.
