AVA price went parabolic on Wednesday as demand for traveling jumped. The Travala token rose to a high of $1.2400, which was the highest level since August 1. This price was about 81% above the lowest level this month, giving it a market cap of over $50 million.
Travel demand continuing
Travala.com is a relatively small but fast-growing company that is using the blockchain technology to disrupt the vast travel industry.
The company operates a portal where people can book over 2.2 million hotels and accommodations using cryptocurrencies. It competes with the likes of Priceline, Expedia, and TripAdvisor.
As a blockchain-first company, Travala launched AVA, its native token. AVA is a cryptocurrency that people can use to pay their hotels and accommodations. It is a token based on the Binance Chain (BEP-2), Binance Smart Chain (BEP-20), and Ethereum (ERC-20).
AVA holders get more perks when they use it to book their accommodations and flights. For example, they receive a 3% discount on the total booking fee. They also receive up to 2% giveback. Other benefits of using AVA are voting rights and access to the proof of travel NFT program.
AVA price has done well in the past few months as global travel rebounded. According to its website, Travala users booked 8,433 room nights in July and 2,057 flights. Its revenue rose by 48% year on year while the number of Smart members rose to 6,568.
Further, over 16.7% of the circulating supply of AVA has been locked by Smart users to earn rewards. 75% of all bookings in Travala were made in cryptocurrencies.
Therefore, the Travala price has risen as investors anticipate more growth as the travel industry stages a strong comeback. Indeed, most similar companies like Trip and Priceline have seen their shares climb.
AVA price prediction
The four-hour chart shows that AVA price has been in a bullish trend in the past few days. In this period, the stock managed to move from June’s low of $0.4570 to today’s high of $1.2490. It has moved above the 25-day and 50-day moving averages and the ascending trendline shown in black.
The Relative Strength Index (RSI) has moved above the overbought level. Therefore, the coin will likely resume the bearish trend as sellers target the next key support at $0.8487.