- The imminent unlocking of Celestia’s $1.06 billion TIA sets up a critical test of key support levels.
- Despite the upcoming liquidity, bearish sentiment prevails due to low social participation and negative funding rates.
Celestia (TIA) The token is set for a big change as it prepares to unlock $1.06 billion worth of tokens, or nearly 80% of its supply. TIA trading price is up 0.87% at $5.37 at press time, so this influx of liquidity could have a big impact on the token’s market direction.
Now, many investors wonder whether the unlocked tokens will spark new demand or increase selling pressure, changing TIA’s current trend.
TIA Price Action Analysis: Consolidation or Breakout?
The daily Celestia chart shows a trading range between $3.83 and $6.77, where the token has been consolidating for several months. TIA is currently hovering around $5.29 with some signs of bearish momentum.
The MACD indicator indicates that the bullish momentum is waning as the signal line approaches zero. Additionally, an RSI below 50 indicates limited bullish strength.
However, as the unlock event approaches, Celestia may face a turning point. If buyers intervene, the price could break the $6.77 resistance and spark upward momentum.
Conversely, if the market reacts unfavorably, TIA could fall to the $3.83 support level, which could signal a potential collapse.
Source: TradingView
Is TIA attracting enough social attention?
The social dominance chart shows sporadic spikes in Celestia discussions, especially in mid-September and early October. However, recent data shows calm social activity, currently hovering around 0.075%. This limited participation suggests that TIA may not yet attract the attention of the wider market.
The lack of social traction may indicate minimal retail excitement leading up to the lifting of lockdowns. Strengthening social dominance can generate new interest and potentially aid in breakouts.
However, if TIA continues to lack social momentum, it may struggle to gain traction despite significant liquidity inflows.
Source: Santiment
Funding rates suggest bearish sentiment.
TIA’s OI-weighted funding ratio was most recently in negative territory at -0.0201%, indicating that short positions are dominating the futures market. This trend highlights a cautious mood as many traders appear to be betting on price declines.
However, if a unlock event sparks new buying interest, a shift to a neutral or positive funding rate could signal a reversal in sentiment, supporting a potential rally.
Therefore, monitoring funding rate trends can provide insight into broader market expectations about Celestia’s price direction.
Source: Coinglass
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In conclusion, the unlocking of Celestia’s massive $1.06 billion puts TIA at a critical juncture. The token price is currently sitting within a stable range at $5.37, but several indicators, including low social dominance and negative funding ratios, reflect bearish sentiment.
As a result, Celestia’s next move will largely depend on how the market absorbs the influx of unlocked tokens. A surge in interest or a positive funding change could push TIA upward. Otherwise, the token may struggle to maintain its value, making this event pivotal for Celestia’s future.