Celestia's TIA Token Drops 12% Amid Bearish Sentiment

Celestia's native token, TIA, has been under significant pressure from bearish sentiment, with increased short selling and a steady downtrend in its price. Since the trading session opened on June 30, TIA has shed 12% of its value, indicating a bearish outlook for both the short and long term. The altcoin appears likely to head toward the psychological support levels of $1.2 or even $1.

Data from various sources showed that over the past couple of days, the Open Interest had periods where it surged higher while Celestia prices were falling, indicative of short selling. Additionally, the Funding Rate dropped into negative territory over the past 24 hours, signaling that short positions were paying longs, further reinforcing the bearish market sentiment. The spot CVD has also been in decline, underlining increased selling volume.

The 1-day chart for TIA/USDT revealed that the bearish pressure over the past few days was not an isolated phenomenon. TIA has been falling since mid-May, with the A/D indicator following the price’s downtrend, showcasing persistent selling volume. The CMF corroborated this finding, with its reading consistently below -0.05 over the past month, signaling sizeable capital outflow from the TIA market. The moving averages also agreed that the momentum was firmly bearish.

Examining the price action, the local low at $1.31 was likely to be broken soon. If this occurred, it would mark a bearish market structure break, an indication to traders that the downtrend was continuing. The 1-month liquidation heatmap offered TIA bulls some hope, with the $1.27-$1.33 zone having a liquidity cluster that was likely to beckon the price lower. Once this magnetic zone was swept, it was possible that the token could see a bullish reversal. However, the steady unlocks of 995k TIA daily and the already existing sell pressure must be overwhelmed for this scenario to occur, and the evidence at hand did not show this was likely to occur soon. Therefore, traders and investors can maintain their bearish bias.