A Reflection on Celestia’s Current State
Celestia [TIA] has experienced a significant decline over the previous month, losing more than 12% of its value. The ongoing sell-off trend is evident on the daily chart, with an additional 6.60% decrease as bearish momentum continues to strengthen.
Market analysis from the crypto community suggests that this may not mark the lowest point for TIA, hinting at potential further declines in the near future.
Active Users Rise for TIA, Despite Lingering Bearish Sentiment
Recent data indicates a notable uptick in active users utilizing the Celestial blockchain, a network that supports TIA and employs Inter-Blockchain Communication (IBC) technology for seamless data transfer between blockchains. Over the past week, Celestial has attracted 62,650 active users, securing the second position among IBC chains for user activity.
However, the increase in active users has not positively impacted TIA’s market performance. Despite the surge, TIA’s price continues to decline, with its market capitalization decreasing by 6.29% to $2.14 billion and trading volume plummeting by 48.69% according to CoinMarketCap.
These metrics reflect a diminishing market confidence, signaling the likelihood of sustained bearish momentum for TIA in the coming days.
Bearish Trends Continue to Prevail in the Market
Presently, a bearish sentiment persists in the market, reinforcing existing downward signals and contributing to a negative outlook.
The Open Interest, which monitors the total number of unsettled derivative contracts such as futures, has witnessed a substantial 7.33% decrease over the last 24 hours, amounting to $238.65 million.
Moreover, the prevalence of short positions over long positions, as indicated by the Long-to-Short ratio of 0.8328, underlines the growing bearish influence in the market.
The recent liquidation of significant long positions totalling $941.10 thousand, compared to only $71.34 thousand in closed short positions during the same period, further emphasizes the dominance of bearish sentiments.
With the prevailing downward momentum in TIA, analysts foresee potential lower price targets for the asset in the days ahead.
Anticipated Risks for TIA Amid Increasing Bearish Pressure
Throughout June, TIA has been consolidating its trades within specific support and resistance levels, typically a sign preceding a significant breakout either upwards or downwards.
In the current bearish market phase, TIA faces two critical downside targets. The initial threshold is $3.7, which could be subject to testing if selling pressure escalates. Should the bearish momentum persist, the asset might witness a more substantial decline, possibly dropping to $2.2.