Avalanche (AVAX) Tests Key $27 3D Supply Zone With Potential Breakout Toward $36

Avalanche (AVAX) is currently navigating a pivotal price threshold, with market participants closely monitoring its interaction with a critical 3D supply zone at $27. Technical analysts emphasize that this level, historically a rejection point for upward momentum since March 2025, represents a structural battleground between buyers and sellers [0]. A decisive breakout above $27, confirmed by a strong daily close, could trigger a bullish rally toward $36, signaling renewed buyer dominance in the cryptocurrency market [0].

The 3D supply zone, characterized by concentrated sell orders, has previously halted AVAX’s price action, making its current test a crucial inflection point [0]. Volume data reveals accumulation by buyers, though dominance remains unconfirmed, underscoring the necessity of a sustained close above $27 to validate the breakout [0]. Trendline support from May 2025 remains intact, providing a foundational technical anchor for bulls. Analysts note that while volume confirms buyer presence, confirmation of bullish momentum requires a clear breakout above the $27 resistance level [0].

Market dynamics suggest a potential pullback to the $17–$19 range as a healthy consolidation phase, offering traders an opportunity to reload positions at a lower-risk level [0]. This retracement scenario aligns with common volatility patterns in cryptocurrency markets, where buyers often accumulate during temporary corrections before resuming upward trajectories [0]. However, traders are advised to exercise patience and await price confirmation to avoid premature entries, given the historical rejections observed in this supply zone [0].

If AVAX successfully converts the $27 level into support, the next major resistance target is $36, a price point associated with a large sell wall that could challenge further gains [0]. Current market interest is evident in 24-hour trading volume surpassing $943 million, reflecting heightened participation as traders anticipate a resolution of the $27 breakout [0]. Analysts caution that sustained momentum beyond this level will depend on follow-through buying, with strong volume and price action confirming the shift in market sentiment [0].

Technical observers, including TheBreakoutZone and CW8900, highlight the importance of trendline integrity and volume patterns in assessing AVAX’s trajectory. A breakdown below the May trendline could invalidate the bullish case, while a confirmed breakout above $27 would strengthen the argument for a $36 target [0]. Market participants are advised to monitor the interplay between the 3D supply zone and trendline support, with patience emphasized to avoid overextending positions during volatile price movements [0].

Source: [0] Avalanche (AVAX) Tests Key 3D Supply Zone With Potential Breakout Above $27 Toward $36, [https://en.coinotag.com/avalanche-avax-tests-key-3d-supply-zone-with-potential-breakout-above-27-toward-36/]