TIA Price Prediction: Coin Struggles With Support as Celestia's 176 Million Token Unlock Intensifies Selling Pressure

TIA's price has slumped over the past 24 hours, following Celestia's 176 million token unlock on Wednesday. This substantial influx of tokens has intensified downward pressure

Celestia's 176 Million Token Unlock Intensifies Pressure on TIA Price

After a period of relative calm, TIA's price has taken a hit over the past 24 hours. This downturn coincides with the unlocking of 176 million Celestia (TIA) tokens on Wednesday, an event that has sparked concerns among investors.

As reported by BeInCrypto, Celestia's token generation event (TGE) participants gained access to their tokens after 21 days of unstaking. However, not all of these tokens will be immediately available for sale. According to Taran Sabharwal, CEO of Stix trading platform, the total selling pressure from the token unlock stands at 92.3 million TIA, or roughly $460 million.

"This equates to a max selling pressure of ~$460M. What is also interesting here is that this accounts for <50% of the total cliff unlocks, which means that the sell pressure is half of what people have been expecting," Sabharwal explained in a post on X.

An analysis of the TIA/USD one-day chart by BeInCrypto reveals the impact of selling pressure on the coin's technical indicators. As of this writing, the coin's Relative Strength Index (RSI), which measures oversold and overbought market conditions, is in a downward trend at 38.46. This RSI reading signals that selling pressure outweighs buying activity among market participants.

Curiously, TIA's futures traders seem to be adopting a more bullish stance. According to Coinglass, the coin's funding rate has turned positive for the first time since September 10.

The funding rate is a periodic fee paid between traders in a perpetual futures market to balance the price of the futures contract with the underlying spot price. Positive funding rates indicate that traders holding long positions (expecting the price to go up) are paying those holding short positions.

When the funding rate turns positive after being negative for a prolonged period, it suggests a potential shift from bearish to bullish sentiment. It indicates that traders now take long positions, expecting prices to rise.

On the other hand, negative funding rates, especially after a period of positive funding, can be a sign of bearish sentiment building up among futures traders. In this case, traders holding short positions (expecting the price to go down) are paying those holding long positions.

TIA is currently trading at $4.68, down 9% over the past 24 hours. This decline has pushed it below the support level of a horizontal channel established since July. In this range, the upper boundary at $6.83 serves as resistance, while $4.71 marks the support level.

Should selling pressure continue, TIA's value may slide further, potentially reaching its multi-month low of $3.72. Conversely, a bullish reversal at the $4.71 support could prompt a recovery, with TIA aiming for a breakout above the $6.83 resistance. Clearing this threshold could drive TIA’s price past $7, a level it hasn’t surpassed since June.