Travala (AVA) price has surged 300% recently, following Binance CEO CZ’s revelation of Binance’s early investment in the platform. This announcement, coupled with the company reporting $100 million in annual revenue, has fueled significant market interest in AVA.

However, as momentum indicators show signs of cooling, the asset has entered a pivotal phase, balancing between further gains and potential corrections.

AVA Is Now In The Neutral Zone

AVA’s Relative Strength Index (RSI) recently surged to 96, staying above 70 from December 12 to December 13, signaling extremely overbought conditions driven by strong bullish momentum. Now, the RSI has dropped to 47.8, reflecting a significant cooldown in buying pressure.

RSI, a momentum indicator measuring price changes on a scale of 0 to 100, indicates overbought conditions above 70 and oversold conditions below 30. AVA’s transition from an overbought zone to a neutral level suggests a shift in market sentiment.

With the RSI at 47.8, AVA price is now in neutral territory, indicating that the prior surge has subsided, and the asset is neither overbought nor oversold. This drop from 96 highlights a loss of momentum, suggesting that the price may stabilize or face further consolidation.

While the current RSI leaves room for a renewed uptrend, traders should also be cautious of potential downside risks as AVA’s bullish momentum continues to wane.

Travala Current Trend Is Losing Its Strength

Travala Average Directional Index (ADX) is currently at 39.5, down from 57 just three days ago. The ADX measures the strength of a trend, with values above 25 indicating a strong trend and those below 20

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Author: Tiago Amaral