Based on data from CoinMarketCap, the total market capitalization of cryptocurrencies dropped by 2.63%, primarily due to declines in alternative coins.
One cryptocurrency, Celestia [TIA], in particular, stood out as a major loser, experiencing a significant decrease of 6.53%. With a growing negative market sentiment, further insights from CryptoCrypto indicate that the price of TIA could see a steeper decline.
Anticipated downward pressure could impact TIA’s price
Having entered a consolidation phase since early July, TIA has been fluctuating within this range, showing noticeable reactions to its upper bounds. Presently, the coin is encountering strong selling pressure at the resistance level.
This resistance level has become a key area for traders looking to drive down the price, evident in TIA’s continuous daily decline of 6.53%.
If this selling pressure persists, TIA is likely to fall toward the support level at $4.528, where it could find temporary stability. Yet, with the ongoing bearish momentum, TIA might potentially revisit its September low of $3.722 or even drop further.
Presence of ‘Death Cross’ hints at further decline for TIA
A bearish pattern has emerged in the TIA market, marked by the blue MACD line crossing below the orange signal line, indicating a strengthening bearish trend.
This type of pattern generally leads to a sustained decline in both momentum and price, with the next probable target being the support area around $4.55.
Furthermore, the movements of the Bollinger Bands point towards a continuation of this downward trajectory. TIA has moved away from the upper band, often associated with an overbought situation, and is now heading towards the lower band, potentially exerting further downward pressure on its price.
Market dynamics favor bearish traders on TIA
As reported by Coinglass, there has been a notable discrepancy in the volume of long and short liquidations in TIA positions over the past day.
Presently, a total of $1.24 million worth of TIA positions has been liquidated, with long positions contributing $1.17 million to this figure, while short traders make up the remaining $75.84 thousand.
This significant contrast in liquidation figures between long and short traders reflects a predominantly bearish sentiment in the market, with more participants expecting further price drops.
If this prevailing bearish outlook persists, it is probable that TIA’s downtrend will endure until substantial buying interest emerges to stabilize the market price.