AVax price could drop to $ 55 despite recent adoption of bitcoin

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The AVAX price shows bleak outlook as it breaks above the lower trendline of the parallel channel. A 17% descent is likely for the price of Avalanche if it crosses the support floor of $ 61. The markets have not reacted to the recent adoption of Bitcoin.

The price of AVAX rose 153% from September 7 to 23, which was a tremendous acceleration. However, the popularized Avalanche is currently facing a setback and looks poised for a downturn.

Texas takes Bitcoin adoption to a new level

Texas appears to be the safe zone for migrant minors around the world after China’s recent ban. Additionally, Texas Governor Greg Abbott appears to be a fan of space. Abbott has twice met with the Texas Blockchain Council, which is launching a summit that will host speakers like Senator John Cornyn (R-TX), Ted Cruz (R-TX) and Senator Cynthia Lummis (R-WY).

As US regulators take their time regulating cryptocurrencies, stablecoins and their issuers, Salvadoran President Nayib Bukele has teased a volcanic-powered Bitcoin mining facility.

Bitcoin’s adoption rate has been like never before, but big crypto and altcoins like Avalanche are showing no signs of a sustained bullish move. In fact, after the October 1 pump, BTC and AVAX are looking to go down.

AVAX award shatters crucial support floor

The price of AVAX rose 150% in 16 days, but the rise slowed after peaking on September 23 at $ 79.68. This ascent set up two distinctive higher highs and two higher lows. When these oscillation points are connected using trend lines, it results in the formation of an ascending parallel channel.

From the local September 23 high, Avalanche has fallen 13% retesting the lower trendline of the parallel channel. However, increased selling pressure pushed it below, leading to a breakout.

As the AVAX price marks the support floor of $ 65, the bearish momentum is likely to continue to strengthen. Additionally, the price of Bitcoin also appears weak, adding a tailwind to the pessimistic scenario. Therefore, an allocation of $ 65 and a subsequent barrier at $ 61.1 will again test the demand barrier of $ 55.36.

This move would constitute a decrease of 17% from the current position.

12 Hour AVAX / USDT Chart

On the flip side, if the AVAX price manages to bounce off the $ 65 support floor and re-enter the parallel channel, it could signal a resurgence of buyers. Such a move might hold the key to a new uptrend if it can produce a swing above $ 79.68.

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