Impact of Profit-Taking on TIA’s Recent Surge, Analyzed by Celestia
Celestia [TIA] has made a significant recovery, balancing out a monthly loss of 19.23% with a 6.10% increase in the last 24 hours. Both market activity and technical charts are currently in favor of a positive trend.
Nevertheless, with traders transferring their TIA holdings to exchanges in preparation for profit-taking strategies, the ongoing rally could hit a speed bump or face temporary setbacks.
Traders Opt for Profit-Taking Amid TIA’s Momentum
Recent data from Coinglass has indicated a rise in profit-taking activity around TIA, evident through a positive Exchange Netflow trend.
The positive Exchange Netflow signifies a shift of TIA from private wallets to exchanges, setting the stage for potential selling to capitalize on recent market upticks.
As of now, more than $277,000 worth of TIA has been moved to exchanges for profit-taking possibilities in the last hour, potentially putting a cap on TIA’s current rally.
This observation aligns with a resistance level marked at 4.525 on the charts, where substantial selling activities might drive the asset’s value downwards towards a target of 4.161, with a further decline to 3.722 if the pressure persists.
Bullish Sentiment Prevails Despite TIA Profit-Taking Initiatives
Notwithstanding the profit-taking trend seen in TIA spot positions recently, the Open Interest metric has stayed elevated, with traders initiating more long contracts.
A high Open Interest rate, recorded at 14.69% currently and valued around $266.49 million, indicates a significant number of unsettled futures contracts, reflecting strong market participation.
This surge in Open Interest is expected to bolster further upward movement for TIA’s value.
Moreover, the Funding Rate remains positive, with long traders compensating shorts to stabilize the price difference.
This consistent funding rate showcases increasing confidence in the ongoing rally and a growing bullish sentiment among market players.
If these indicators hold steady, any price downturn in TIA is anticipated to be temporary, with a potential recovery on the horizon.
Long Liquidations Impact TIA’s Upward Trajectory
Current liquidation data implies a prevailing bearish influence on the market, with long liquidations totaling $1.11 million. This notable sell-off has further restrained TIA’s price from climbing higher.
Should long liquidations persist, the downward trend may endure until the market gathers adequate momentum to challenge and surpass existing resistance levels.