fxs_header_sponsor_anchor

AVAX price could drop to $55 despite recent Bitcoin adoption

  • AVAX price shows a grim outlook as it breaches below the parallel channel’s lower trend line.
  • A 17% descent is likely for Avalanche price if it slices through the $61 support floor.
  • The markets have failed to react to the recent adoption of Bitcoin.

AVAX price rose 153% from September 7 to September 23, which was an amazing run-up. However, the popularized Avalanche is currently facing a setback and looks ready for a downswing.

Texas takes Bitcoin adoption to a new level

Texas appears to be the safe zone for migrating miners from across the world after the recent China ban. Moreover, Texas Governor Greg Abbott seems to be a fan of the space. Abbott has met twice 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). 

While the US regulators are taking their time regulating cryptocurrencies, stablecoins and their issuers, El Salvador President Nayib Bukele teased a Bitcoin mining facility powered by volcanoes.

Bitcoin’s adoption rate is like never before, yet the big crypto and altcoins like Avalanche show no signs of a sustained bullish move. In fact, after the October 1 pump, both BTC and AVAX are looking to head lower.

AVAX price shatters crucial support floor

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

Since the local top on September 23, Avalanche dropped 13% as it retested the parallel channel’s lower trend line. However, the increased selling pressure pushed it below it, leading to a breakout.

As AVAX price tags the $65 support floor, the bearish momentum likely continues to build. Moreover, Bitcoin price is also looking weak, adding a tailwind to the pessimistic scenario. Therefore, a breakdown of $65 and subsequent barrier at $61.1 will retest the $55.36 demand barrier.

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

AVAX/USDT 12-hour chart

On the other hand, if AVAX price manages to bounce off the $65 support floor and reenter the parallel channel, it could signal a resurgence of buyers. Such a move could hold the key to a new uptrend if it can produce a swing high above $79.68.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.