Avalanche (AVAX) is back near a price level that has previously presented resistance. The current trends may open new opportunities for growth.
AVAX and Resistance at $27
Avalanche (AVAX) is once again approaching the $27 price level, which has acted as a resistance in the past. The last time this resistance was noted was in March. If the price breaks above this level, the next important zone on the chart is near $36. Analyst Ali Martinez highlighted this on social media, pointing out that a clear breakout could lead to a quick push higher.
Short-Term Weakness Below 9-Day SMA
The recent pullback has caused the price to fall below the 9-day simple moving average, now sitting at $24.35. This short-term reference can help test momentum. Slowing strength may indicate a decline in buying activity, unless the price rebounds soon. The RSI reading is at 56.80, after reaching 68.84 earlier this week, also suggesting a potential slowdown in buyer activity.
Watching the $33–$36 Range
According to trader CW, the last dip found support at the 0.618 Fibonacci level, and they are forecasting the next upside zone to be around $33.30 based on the 1.618 extension. This range coincides with the $36 resistance zone active in late 2023. Many traders will pay close attention to these levels if AVAX breaks above $27.
The Avalanche (AVAX) market is clearly under pressure at the $27 level. A breakout above this could pave the way for further growth, though short-term weakness may also lead to a return to lower support zones.
