Celestia’s native token, CTIA, is currently experiencing significant challenges. Trading at $5.32, it has seen a 12.37% decline over the past 30 days.
The token is approaching a critical juncture, and several indicators suggest that TIA might face further losses. Here’s an overview of the situation.
Potential Further Decline for Celestia Holders
Analyzing the daily chart, the Relative Strength Index (RSI) stands at 38.86. This technical indicator gauges the speed and magnitude of price movements to determine if an asset is overbought or oversold. Typically, an RSI reading of 70 or above indicates an overbought condition, while a reading of 30 or below signals an oversold state. The current RSI suggests TIA may be heading towards the oversold zone.
If the RSI continues to decline, TIA’s price might also drop further, potentially falling below $5.
Market Sentiment and Funding Rate
The prevailing sentiment in the derivatives market appears bearish. On-chain data reveals that TIA’s Funding Rate is negative, indicating that traders expect the token’s price to drop. The Funding Rate measures the difference between a cryptocurrency’s contract price and its spot price. A negative rate suggests that the perpetual price is lower than the spot price, reflecting bearish expectations.
This negative Funding Rate has been a trend over the past month, highlighting skepticism in the market regarding TIA’s short-term outlook.
Price Prediction: Will Increased Liquidity Provide a Rebound?
Currently, TIA is trading within a descending triangle pattern that has been in place since July 22. This pattern generally signals a bearish trend, with the price consistently hitting lower highs and finding support around a flat line. Without sufficient buying momentum, the token may experience another breakdown.
The Fibonacci Retracement levels, which indicate potential support and resistance zones, show that TIA has fallen below the 23.6% retracement level. If selling pressure persists, TIA’s price could drop to around $4.13.
Potential for Price Rebound
On a more positive note, the Money Flow Index (MFI) shows signs of increasing liquidity for TIA. If this trend continues, there could be a potential rebound, with the price possibly rising to $5.98, which would counter the current bearish outlook.
Disclaimer
This analysis is intended for informational purposes only and should not be interpreted as financial or investment advice. Market conditions are volatile and subject to change. Always perform your own research and consult with a professional before making financial decisions. Please review our updated Terms and Conditions, Privacy Policy, and Disclaimers.
