Celestia’s native token TIA has been experiencing a decline in price recently due to several factors:
Recent Price Performance
- Celestia has dropped 27% from $6.16 to $4.50 due to increased selling pressure and recent token unlocks.[2]
- Indicators show potential recovery: Bollinger Bands signal TIA is oversold, while RSI approaches same zone.
- Declined more than 50% in 2024 from its all-time high of $20.49 reached in February 2024[3]
- Currently trading around $4.69, down 0.27% in the past day[1]
Key Factors Behind the Decline
- Upcoming Token Unlock: A major token unlock event was scheduled for October 30, where 175.56 million TIA tokens (82% of current circulating supply) valued at $853 million was unlocked[2]. This large increase in circulating supply is likely putting downward pressure on the price.
- Regular Token Releases: Celestia has a schedule of monthly token unlocks planned over the next 3 years, which may be contributing to selling pressure[2].
- Market Conditions: The broader cryptocurrency market has been volatile, which can impact individual tokens like TIA.
- Technical Indicators: Some technical analysis suggests bearish sentiment, with the price struggling against resistance levels around $4.80 and $4.93[1].
- Profit-Taking: Given Celestia’s recent $100 million funding round and previous price increases, some investors may be taking profits[2].
Outlook
While the price is currently under pressure, some analysts see potential for recovery:
- Support level identified around $4.68[1]
- Some predictions suggest possible increases in the coming months, though these should be viewed cautiously[3]
Further, the Bollinger Bands actively indicates whether an asset is overbought or oversold. When the price touches the upper band, the asset is considered overbought. In TIA’s case, the price has touched the lower band, signaling it is oversold and may soon reverse upward.[9]
It’s important to note that cryptocurrency prices are highly volatile and unpredictable. The recent token unlock event on October 30 was likely be a significant factor in TIA’s short-term price action.
Citations:
[1] https://coinstats.app/news/983e813c4e640fe2e6a7e2052d54e3b3b13a28c79e5ef131cd3a214bf7df4a82_Celestia-(TIA)-Price-Analysis:-Will-TIA-Break-Out-or-Break-Down%3F/
[2] https://unchainedcrypto.com/celestias-tia-token-down-23-over-last-7-days-ahead-of-853-million-unlock/
[3] https://www.ccn.com/analysis/crypto/celestia-tia-price-prediction/
[4] https://economictimes.indiatimes.com/markets/cryptocurrency/celestia-price/cryptodetail/symbol-tia.cms
[5] https://cryptonews.net/news/analytics/30023136/
[6] https://beincrypto.com/celestia-price-challenges-token-unlock/
[7] https://www.coinspeaker.com/celestia-tia-breaks-macro-falling-trend-raising-100m/
[8] https://www.binance.com/en/square/post/14866116886425
[9] https://beincrypto.com/celestia-crypto-price-decline-oversold
