POSCO adopts Avalanche blockchain, AVAX price holds key support above $7

POSCO’s on-chain integration boosts Avalanche

POSCO, globally recognized as one of the largest steel manufacturers, has announced the adoption of Avalanche’s blockchain technology to facilitate digital trade. By partnering with firms such as Intain and Olea, POSCO aims to bring global trade transactions on-chain. This initiative expands Avalanche’s real-world use cases, signaling a potential shift in enterprise interest towards blockchain-based solutions.

POSCO International delivers steel and related products to major clients worldwide, including major automotive and electronics companies like Hyundai, Samsung, Kia, Toyota, GM, Ford, and LG.

POSCO’s latest implementation with Avalanche is described as “bringing global trade on-chain,” as the partnership leverages blockchain-based tools to streamline operations and digitalize trade processes.

Mini dictionary: POSCO, South Korea’s largest steel company, operates internationally and is a major supplier to leading automotive, electronics, and energy businesses.

The announcement has acted as a catalyst in the market, especially as open interest in AVAX derivatives surpassed $300 million, according to recent CoinGlass data.

Technical outlook: Key resistance and support zones

At press time, Avalanche is trading at $7.39, reflecting a 2.04% decline over the past 24 hours after a notable rally seen toward the end of August. The daily chart on TradingView shows AVAX trading above the middle line of the Bollinger Band at $6.754, with resistance near the upper band at $7.80. A recent surge lifted the price from the $6.37 region before encountering resistance at $7.80 and pulling back.

Technical analysis indicates that surpassing the $7.80 resistance could provide a bullish signal, while retreating below $7.254 or $6.754 would increase the possibility of further declines. The 14-day relative strength index (RSI) currently stands at 62.20, above its moving average of 56.60, which points to continued buying momentum despite the recent pullback from overbought levels.

With both the Bollinger Band middle line and RSI above key thresholds, the technical setup remains moderately positive. However, a confirmed drop below $7.254 would weaken this outlook.

Analysts point to $7.80 as a pivotal resistance; a clear breakout above this could open the door to further gains, while a breakdown below $7.254 would signal increasing downside risks.

Market outlook and near-term projections

According to Coincodex forecasts, AVAX is projected to reach $7.42 by August 26, representing a modest 0.44% gain from current levels. Subsequent short-term targets include $7.41 and $7.40 into the end of the month, suggesting limited potential for immediate significant price moves.

Open interest levels above $300 million highlight a heightened risk of volatility, as traders respond quickly to technical breaks and fundamental news.

Market participants are advised to monitor these key support and resistance levels, while factoring in broader crypto market volatility and potential catalysts, including future developments in enterprise blockchain adoption.