Celestia $TIA Dips to $1.77 Amid Market Selloff and Short-Term Bearish Momentum

Celestia’s ($TIA) token dipped to $1.77 amid a broader market correction, with selling pressure intensifying in the short term. The decline reflects a continuation of bearish momentum observed in recent days, as $TIA failed to sustain gains above $2.30 and rolled over into a sharper downtrend. The token now trades at a 12-day low, with bearish indicators such as RSI (34) and MACD confirming a loss of upward momentum. On the 4-hour chart, $TIA/$USDT has broken below key support levels, and red volume bars have dominated since July 27, signaling strong distribution from sellers [1].

Despite the near-term weakness, fundamental developments point to a potentially stronger medium to long-term outlook. The Celestia Foundation recently executed a significant token buyback, repurchasing 43,451,616.09 TIA from Polychain Capital for $62.5 million. This move, executed at $1.44 per token, aligns with pre-upgrade market levels and is part of a broader strategy to reallocate token holdings to new investors through a scheduled unlock period from August 16 to November 14 [1]. The buyback, combined with reduced network inflation (by 33%) and new staking mechanics under the “Lotus” upgrade, aims to improve tokenomics and reinforce long-term value retention [1].

Technological progress is also a key driver. Celestia’s Mamo-1 testnet, which supports 128 MB blocks—16 times larger than the current mainnet—has demonstrated a throughput of 21.33 MB/s, positioning the network as a high-performance data availability layer for next-gen blockchain solutions [1]. The integration of Hyperlane for cross-chain interoperability further strengthens its ecosystem. Institutional adoption is also on the rise, with Noble leveraging Celestia’s infrastructure to develop stablecoin-native financial applications [1].

Market sentiment is mixed. While institutional interest—such as VanEck’s recent ETN launch tied to $TIA—suggests growing legitimacy in traditional finance, the broader altcoin market remains under pressure. $TIA’s current consolidation between $1.70 and $1.75 is a critical zone. If sellers continue to dominate without a strong bounce, further declines toward $1.60 or $1.52 could follow [1]. However, the network’s underlying upgrades, combined with strategic buybacks and increasing use cases, could support a rebound above $2 in the coming months [1].

Celestia’s modular blockchain strategy and growing adoption by both developers and institutional investors highlight its role as a key player in the evolving blockchain landscape. Whether the recent pullback is a buying opportunity or a deeper correction will depend on how the market digests these developments and whether new demand can offset current selling pressure [1].

Source: [1] https://cryptonews.com/news/celestia-tia-dips-1-77-buyback-upgrades-loom/