- AVA forms a bullish engulfing candle after extended consolidation, signaling a potential 300 percent rally toward key resistance zones.
- Strong accumulation and a breakout from a descending wedge suggest AVA may be entering a powerful bullish phase with major upside targets.
- Technical structure reveals a full market cycle with AVA now positioned for recovery as smart money flows back into the $0.60-$0.80 range.
AVA appears ready for a powerful upside reversal following months of downside pressure. As of now, AVA trades at $0.6678, down nearly 12% from recent levels. However, strong technical signals suggest a potential breakout is underway. A bullish engulfing candle recently formed near the bottom of a key support zone. This comes after weeks of tight consolidation between $0.40 and $0.80. Moreover, the pattern resembles a descending wedge — a classic reversal signal.
The structure indicates that AVA may be entering a new phase of bullish momentum. Besides, the most recent weekly green candle signals renewed buyer interest. Price action within the past few weeks has held steady above the $0.60 mark. This range, considered an accumulation zone, shows signs of smart money entering the market. If this trend continues, AVA could gain over 300% from current levels. Price targets suggest significant upside potential in the months ahead.
Key Price Zones and Technical Confirmation
The first major resistance sits at $1.4931, which marks a historical horizontal level from a previous structure. This is the initial target if bullish momentum holds. Further upside may carry AVA toward the $1.9113 zone, representing mid-range resistance. Consequently, a confirmed breakout may extend the rally toward the $2.4417 region. That level serves as a full breakout extension target based on previous market behavior.
Moreover, the recent accumulation period followed a complete cycle. AVA saw accumulation between June and October 2024, followed by a sharp markup in November. The rally drove prices from below $0.80 to nearly $2.00 within one week. However, strong profit-taking reversed much of those gains by February 2025. This markdown phase ended in March, forming the current consolidation structure.
Momentum and Market Structure Suggest Reversal
Currently, AVA trades at just 33% of its recent December 2024 high. However, the market structure has shifted in favor of bulls. Trading volume has declined compared to the rally and correction phase. Significantly, this quieter volume phase is typical during accumulation. Additionally, the bullish engulfing candle offers a textbook signal of trend reversal.
