Azevedo managed to grab a hat-trick against the hot favourites
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The United States upset strong gold medal favourites Croatia 7-5 on Saturday - but could still fail to make the quarter-finals in Beijing.
Tony Azevedo scored three goals for the US, who were stifling in defence, yet they must beat Germany on Monday to secure a place in the last eight.
"It's huge," said US coach Terry Schroeder. "They [my players] honestly can win this thing now."
Elsewhere, two-time defending Olympic champions Hungary beat Australia 13-12.
The victory for the US was the most significant for its men's water polo team in two decades, but Schroeder was keen to place its importance in context.
"They [Croatia] were playing as well as anyone here," he said.
"To beat them, I think upstairs is where these guys have needed to improve the most over the last couple of years.
"It's a huge boost, but it doesn't mean anything unless we win Monday."
Hungary, meanwhile, blew most of a five-goal lead before hanging on to beat Australia and clinch a spot in the next round.
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606: DEBATE
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Montenegro and Australia will play for the final spot in Group A on Monday.
Serbia also advanced with a 15-5 victory over hosts China, with Aleksandar Sapic contributing nine goals.
Also on Saturday, Germany beat Italy to keep their hopes of progression alive while Greece defeated Canada 13-7.
The Croats have been widely tipped to win gold in Beijing, having beaten Italy, Serbia and Germany by a combined 15 goals in their first three games.
But they are no longer a foregone conclusion to win group B and earn an automatic spot in the semi-finals.
The winners of each group qualify for the semi-finals, with the teams finishing in second and third playing for place in the last four.
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