- Leading modular blockchain Celestia is facing fluctuations in the price of its native coin TIA.
- Linear unlocking is underway with nearly half of TIA tokens in circulation.
- With TIA down 79% from ATH, most large investors are reducing their positions.
Celestia (TIA), an altcoin backed by advanced modular blockchain technology, has pursued a bearish price trend over the past two weeks. Despite the chain’s initial success, hitting an all-time high of $20.85 on February 10, 2024, price and TIA trading volume steadily declined over the next nine months.
Unlock Challenge Celestia Price $940 Million
Since then, Celestia’s market capitalization has halved, from $3.29 billion to its current $1.73 billion. Although Celestia clearly remains the largest modular blockchain. Dymension (DYM) came in second with a market capitalization of $270 million, nearly seven times smaller, according to CoinMarketCap data.
Celestia’s price is currently rapidly approaching its year-to-date low of $3.72 and is down more than 6% in the last 24 hours. Although the token unlock at the end of October 2024 brought a whopping 175.59 million native tokens to the market, there are several additional reasons for TIA’s downward trend.
There is another unlock in progress, with the Cliff Token unlock going live on October 30, 2024 at 2:00 PM UTC. Unlike unlocking cliffs all at once, linear unlocking currently puts 998.32K TIA tokens in circulation each day, increasing the daily supply by $4.3 million. Currently, 404.4 million of the total 1.08 billion TIA coins are in circulation.
TIA hit by negative funding ratio
In addition to the large cliff and linear unlocks, Celestia’s bearish trend is possible due to its consistently negative open interest (OI) weighted funding ratio. In the derivatives market, altcoins lost the attention of speculative traders in early July 2024. This is because the funding rate has been blinking below zero for most of the period until October 31, 2024.
Conversely, 52nd-ranked altcoin Celestia regained a positive leveraged market funding ratio on October 31, 2024, hours after the cliff was unlocked. Nonetheless, the positive TIA OI funding ratio has not been maintained for more than a week since July 2024. As of press time, it is trading at $4.275, according to price aggregator CoinGecko.
On the other hand, TIA price trend reversals are highly dependent on large-scale investor action. According to the 4-hour technical chart, this pattern suggests a further decline in cryptocurrency whale positions, with Chaikin Money Flow (CMF) remaining at -0.13. As if that weren’t enough, the Stochastic Relative Strength Index (StochRSI) is extremely overbought.
On the flip side
- While large-scale cryptocurrency token unlocks tend to put short-term selling pressure on altcoin prices, securing a majority of the coins in circulation minimizes the risk of Celestia (TIA) price manipulation.
Why This Matters
When demand exceeds supply due to a combination of significant trading volume and real utility cases, the price trajectory of a coin typically becomes bullish.
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