AVA's Momentum Waning

Travala (AVA) recently surged 300% after Changpeng Zhao (CZ) revealed Binance's early investment in the platform, coupled with Travala’s $100 million annual revenue report.

This sparked significant market interest, yet momentum indicators now show signs of cooling.

The Relative Strength Index (RSI) spiked to 96, signalling overbought conditions, but dropped to 47.8 and currently sits at 35.997 according to Investing.com.

RSI values above 70 signal overbought conditions, while values below 30 indicate oversold conditions.

AVA's shift from overbought to near-oversold suggests a change in market sentiment, with potential for price stabilisation or further consolidation.

While room remains for an uptrend, traders should be mindful of the risks as AVA's bullish momentum weakens.

CZ's HODL of AVA Gave it a Further Boost

On 11 December, Travala announced its annual revenues had hit $100 million, a significant increase from $59.6 million in 2023, driven by growing demand for crypto-based flight and hotel bookings.

The company also revealed a new strategy to hold a portion of its treasury in AVA and Bitcoin, following the example set by Michael Saylor's MicroStrategy.

However, it was CZ's 12 December post on X (formerly known as Twitter) that truly captured the market's attention.

Highlighting Binance's early investment in Travala from the pre-COVID era, CZ's endorsement fuelled investor curiosity and excitement.

Known as one of crypto's "OGs," CZ's influence is undeniable, and his tweet not only bolstered Travala's credibility but also hinted at its long-term potential.

The tweet sparked a surge in AVA's price, which jumped 350% from $0.75 to a peak of $3.38 in just 24 hours.

According to LunarCrush, the post generated massive social activity, with over 1.3 million views (now 1.7 million), making Travala the market's focal point for the day.

Co-founder and CEO of Travala, Juan Otero, hinted that there are big thigs ahead.

Will AVA Regain Uptrend Momentum & Create a Christmas Miracle?

Should the bearish trend persist, AVA's price may test the robust support level at $1.56.

A breakdown below this point could trigger a steeper decline, potentially bringing the price down by as much as 50%, with targets around $0.81 or even $0.62.

However, if the upward momentum resumes, AVA could rebound, aiming to retest the $3.38 resistance level, with a potential rally towards $3.50, maintaining its position as one of the top performers of the past week.

Currently trading at $1.75, AVA has seen a nearly 15% drop in the last 24 hours, according to CoinMarketCap.

Will it regain momentum and deliver a holiday-season rebound?