The cryptocurrency market is buzzing as Avalanche‘s native token, AVAX, recently reached $7.39, even after a slight 2.04% dip in the past 24 hours. This follows a period of noticeable rise, keeping the token above vital technical support levels. A significant development in the blockchain space involves the South Korean steel giant POSCO.
Will Technical Analysis Propel Growth?
Analyzing TradingView’s daily charts, AVAX is currently trading above the middle line of the Bollinger Bands at $6.754. The upper boundary stands at $7.802. After climbing from around $6.37, AVAX faced resistance near $7.80. If the $7.80 mark is exceeded, bullish momentum could strengthen significantly. However, failure at this resistance might see support tested at $7.254 and $6.754. A decline below $7.254 could weaken the optimistic short-term outlook.
The 14-day relative strength index is positioned at 62.20, above its moving average of 56.60, indicating sustained buyer interest even amidst retracements. Although the index has slightly retracted from the overbought zone, it suggests that while momentum isn’t as vigorous as before, it’s still present.
Avalanche’s team noted that POSCO, alongside Intain and Olea, is shifting global trade solutions onto the blockchain.
What Role Does POSCO Play?
Avalanche announced that POSCO, in collaboration with Intain and Olea, is developing blockchain-based digital trade solutions. As Korea’s leading steel manufacturer, POSCO is a significant player in the global supply chain. This move is seen as a meaningful development for Avalanche’s real-world application and could enhance its practical utility.
In terms of market positioning, open interest in AVAX has surpassed $300 million according to CoinGlass data. This indicates potential volatility given the increase in market activity. Despite positive fundamental news, the derivatives market’s intensity might cause short-term fluctuations in AVAX’s price trajectory.
Is Limited Rise on the Horizon?
According to Coincodex projections, AVAX could reach $7.42 by August 26, with expectations of stabilizing around $7.41 and $7.40 by August 30. These predictions imply a limited upward potential rather than a robust breakout in the short term.
Staying above $7.80 could reinforce the price structure, but a reversal from this level increases the chance of a deeper correction towards $6.754.
Traders are closely watching the $7.80 resistance and $7.254 support levels. While the partnership with POSCO bolsters fundamental support, momentum in technical indicators has diminished slightly. Price reactions between these levels could dictate short-term market movements for AVAX.
