AVAX Near $27 Hurdle, 4.7% Weekly Drop Tests Breakout Potential to $36 Target

Avalanche (AVAX) is nearing a critical juncture as the price hovers around the $27 resistance level, a key psychological barrier that has previously halted upward momentum. Traders and analysts are closely monitoring whether AVAX can sustain a breakout above this level, which could trigger a rally toward the $36 target zone. According to Ali Martinez, a market analyst on social media, a clean break above $27 may accelerate the price toward the $33–$36 range, aligning with historical resistance levels from late 2023. However, the current price of $23, which has fallen 1% in 24 hours and 4.7% over the past week, reflects short-term weakness after a strong July rally that saw the asset surge 65% from a $15.50 low.

Technical indicators suggest mixed signals. AVAX has recently dipped below the 9-day simple moving average (SMA) at $24.35, a short-term trend line that traders use to gauge momentum. The relative strength index (RSI) has also retreated from near-overbought territory to 56.80, signaling potential buyer exhaustion. If the RSI drops below 50, it could indicate further downward pressure. Meanwhile, the price’s recent pullback found support at the 0.618 Fibonacci level, which trader CW highlighted as a catalyst for a potential push toward $33.30, based on the 1.618 extension.

The broader ecosystem is gaining traction, with FIFA’s Layer-1 blockchain project on Avalanche adding long-term institutional visibility. The FIFA Blockchain, designed to power digital collectibles and fan experiences, is expected to expand Avalanche’s use cases and attract global adoption. This development could reinforce AVAX’s appeal to institutional investors, though its immediate impact on price remains speculative.

A successful breakout above $27 would need to hold to validate the $36 target, but a failure could see AVAX retreating to support zones at $23.50 or $20.50, which previously acted as resistance. Traders will watch these levels closely, as sustained weakness below $24.35 may signal renewed bearish sentiment.

The analysis underscores the speculative nature of the $36 target, which is based on Fibonacci extensions and historical resistance patterns. While the FIFA project offers a positive catalyst, its influence on near-term price action is not quantifiable without further data. Investors are advised to balance technical indicators with broader market sentiment, as AVAX’s volatility remains pronounced in the short term [1].

Source: [1] [Avalanche (AVAX) Breakout Imminent? $36 Target If $27 Cracks] [https://coinmarketcap.com/community/articles/68837e9e2fb07463b9e4386d/]