TIA Price Shows Signs of Life, Amidst Market Downturn: Can It 2x?

• The TIA price has declined significantly from its ATH, but recent data suggests a potential reversal probability.
• Derivative metrics like open interest and funding rate indicate a bullish bias.
• The upcoming token unlock in October could pose a risk, but there is time for a potential rally beforehand.

Celestia (TIA) is sitting at essential support after a fall of nearly 80% from its all-time high (ATH) of $21.140, achieved in early 2024. The TIA price has come down in the third quarter’s final month and has failed to display any major comeback.

Over the past month, it declined by 27% and 46% in the last 3 months., indicating a persistent downward trend. Despite this, the token showed a 4% increase in performance over the past week.

This recent uptick could signal a potential opportunity for investors. If this bullish momentum continues, the Celestia price might rise further, marking a stable upward trend. Continue reading more and assess why the price could continue growing.

What Derivatives Data Signify in TIA Price?

According to Coinglass, open interest for TIA crypto was $126.94 million, up 14.68% from the previous session. The surge has shown that the number of open contracts has increased, signifying rising intraday demand.

The 24-hour long/short ratio is 0.9673, meaning there are more short positions than long positions. Moreover, the weight is heavier on the bull side.

The short positions liquidated in the last 24 hours amounted to $153.16K. On the other hand, the liquidation of long positions amounted to $103.21K. Liquidation on the short side was greater, predicting the TIA price could rise ahead.

These metrics highlighted that the TIA crypto is bullish intraday. These values verify the recent pump in the price.

Similarly, the OI-weighted funding rate is in red at -0.0123%, showing that the bearish dominance has been waning. These hints show that buyers’ interest might be increasing and could show a sustained northward movement in the long term.

Can the TIA Crypto Rise as Major Token Unlock Nears in October?

The Brokerscore has highlighted that the TIA crypto has strong fundamental health. It has received significant investments from the strong backers of the industry. Some backers are Bain Capital Crypto, Polychain Capital, Binance Labs, and others.

Per the CertikSkynet, it has BBB tier security and a security score of 75.37. Even its social community is active and strong, with top industry followers. For its fundamental strength, the Chainbroker has rated TIA crypto as 7.89/ 10, which sounds like a healthy score.

Despite strong fundamentals, history has given multiple reasons to believe prices usually fall when new supply exceeds demand. According to TokenUnlocks, over 174 million tokens will be unlocked on October 31, which could be a selling day.

However, there seems to be one and a half months left when writing for the next token unlock date. This hypothesizes that a rally or a parabolic move could be seen before the unlock happens.

TIA Price sits at a key support

Over the daily chart, the TIA price showed more than 800% gains by the second week of 2024. However, the supply zone developed by strong profit bookers displayed a strong sell-off, leading to a declining wedge. The price has spent 215 days in this narrowing range.

However, the TIA price has formed strong support at $3.884, a level it has failed to break since July. A parabolic recovery could appear if the bullish interest revives, showing a successful bullish pattern breakout, precisely the falling wedge.

Therefore, suppose the Celestia price breaks dynamic EMA’s (20, 50, and 200 days). The resistance levels to watch for are $7.96 and $11.79, respectively.

However, assuming the TIA price deflects back from the upper to the lower border. As a result, TIA crypto might risk falling to a record low if it breaches this critical support level.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.