Heat olive oil in a large pot over medium heat. Add the diced onion and cook for 3 to 4 minutes until soft and fragrant.

Add garlic, cumin, chili powder, smoked paprika, and oregano. Stir and cook for about 30 seconds, just until the spices bloom.

Place the chicken directly into the pot. Pour in the chicken broth, diced tomatoes with green chilies, and tomato sauce. Stir well.

Bring the soup to a gentle boil, then reduce heat and simmer uncovered for 20 minutes, or until the chicken is fully cooked and tender.

Remove the chicken from the pot and shred it using two forks. Return the shredded chicken to the soup.

Season with salt, black pepper, and lime juice. Let the soup simmer for another 5 minutes.

Ladle into bowls and top with avocado, cilantro, and any low carb toppings you like.