AVAX’s $27.65 Support Becomes Battleground for Bulls and Bears

Avalanche’s (AVAX) native token has experienced a 17% decline in the past week, with its price currently testing critical support levels between $24.8 and $25.9. The sell-off, which has aligned with broader crypto market weakness, has seen AVAX fall to $27.72 after failing to break above a key resistance of $30.28. Institutional initiatives, including a $550 million AVAX acquisition plan by Nasdaq-listed AVAX One, have not yet reversed the downward trendAvalanche Extends Weekly Losses to 18% as Institutional Backing Fails to Lift Market^[1]. Technical indicators suggest that while trading volume has dipped to 121,896 tokens, the market remains cautious about Avalanche’s long-term fundamentalsAvalanche Extends Weekly Losses to 18% as Institutional Backing Fails to Lift Market^[1].

The recent price action has drawn attention to a pivotal support zone near $27.65, with analysts highlighting the potential for a stabilization if buyers defend this level. Whale accumulation has added a layer of optimism, with reports of a $17 million AVAX purchase reinforcing the importance of the $27–$28 rangeAVAX Price Prediction: AVAX Eyes $37 Breakout as $27 Support Gets Tested^[2]. A successful hold above this threshold could open the path to $32, with $36–$37 identified as the next major resistance cluster. Conversely, a breakdown below $27 risks a retest of the $24–$25 support rangeAVAX Price Prediction: AVAX Eyes $37 Breakout as $27 Support Gets Tested^[2].

Avalanche’s ecosystem has shown resilience in other metrics. DEX volume on the platform nearly doubled in September, rising from $2.7 billion to over $5 billion, signaling growing liquidity and user engagementAVAX Price Prediction: AVAX Eyes $37 Breakout as $27 Support Gets Tested^[2]. Institutional interest has also intensified, with SkyBridge Capital’s Anthony Scaramucci and Coinbase’s Brett Tejpaul advising AVAX One, a firm planning to hold over $700 million in AVAXAvalanche Extends Weekly Losses to 18% as Institutional Backing Fails to Lift Market^[1]. These developments underscore Avalanche’s strategic positioning in the real-world assets (RWAs) narrative, though market participants remain skeptical until the token demonstrates stronger buying momentum.

Market sentiment is mixed, with derivatives data revealing a 62.73% surge in AVAX trading volume to $298.27 million, yet open interest has declined 5.20% to $248.31 million, indicating some traders are closing positionsAVAX Buyers Beware: Key Support and Resistance Levels to Watch Before Investing^[4]. The long/short ratio on major exchanges stands at 0.941, favoring sellers, but Binance’s AVAX/USDT ratio (2.3367) reflects optimism among its user baseAVAX Buyers Beware: Key Support and Resistance Levels to Watch Before Investing^[4]. On-chain metrics, including a 30% increase in C-Chain throughput post-Octane upgrade and an 8x rise in daily transactions since March, highlight the network’s operational strength.

Looking ahead, analysts present divergent views. Bullish scenarios hinge on a successful breakout above $37, with some projecting a potential rally toward $80Can Avalanche (AVAX) Price Extend Its Rally? Here’s What^[3]. However, bearish indicators, including a double-top pattern and bearish divergences in RSI and MACD, warn of a possible correction to $28.50 or lower. A critical juncture lies in AVAX’s ability to hold above $27, as a sustained defense could validate the bullish case, while a breakdown may signal deeper consolidationAVAX Price Prediction: AVAX Eyes $37 Breakout as $27 Support Gets Tested^[2].