Celestia [TIA] has witnessed a significant decrease in value over the last month, with a decline of more than 12% in its overall worth. The daily chart illustrates a continuous trend of selling off, resulting in an additional 6.60% dip as downward momentum gains strength.
Analyses in the crypto sphere propose that this might not mark the lowest point, hinting at the possibility of further drops in TIA’s market value in the near future.
Rise in TIA’s Active Users Despite Bearish Market Sentiment
Recent data reveals a notable surge in active users on the Celestial blockchain (an IBC-enabled network), the fundamental platform for TIA, over the past week.
Inter-Blockchain Communication (IBC) networks like Celestial facilitate seamless data transfer and compatibility among blockchains. Recent statistics show that Celestial has attracted 62,650 active users, securing the second position among IBC networks in terms of user engagement.
Despite the increase in active users, the positive momentum has not translated into an improved market performance for TIA. Despite the user growth, TIA’s price continues to decline. According to CoinMarketCap data, its market capitalization has fallen by 6.29% to $2.14 billion, alongside a sharp 48.69% decline in trading volume.
These metrics reflect a diminishing market confidence, with further evaluations indicating the likelihood of an ongoing downward trend for TIA.
Bearish Control Tightens on the Market
Currently, bearish sentiment persists in the market, reinforcing the existing downward signals.
Open Interest, which monitors the total number of outstanding derivative contracts—specifically futures in this context—has witnessed a notable 7.33% decrease, settling at $238.65 million over the last 24 hours.
Moreover, short positions exceed long positions, as indicated by a Long-to-Short ratio of 0.8328, highlighting the growing bearish impact.
The low ratio aligns with the recent liquidation of considerable long positions valued at $941.10 thousand, adding to the downward pressure on the asset. In contrast, only $71.34 thousand in short positions have been closed during the same period, further emphasizing the bearish dominance.
As the prevailing bias for TIA remains downward, if this negative momentum persists, potential lower price targets have been identified through CryptoCrypto analysis.
TIA Faces Risk of Dropping to $3.6 Amid Mounting Bearish Pressure
Since June, TIA has been ranging within a consolidation pattern, moving between crucial support and resistance levels. Such formations typically foreshadow a decisive breakthrough, either upwards or downwards.
In the current bearish phase, TIA confronts two significant downside targets. The initial target stands at $3.7, a level that might come under scrutiny if selling pressure escalates.
Should the bearish trend persist, the asset could face a steeper decline, potentially dropping down to $2.2.