Celestia (TIA) has been declining over the past few weeks as the market appears to have settled into a more neutral position.
TIA reported a year-to-date decline of 25%; The past day reflected this neutral situation, with an increase of 0.2% as of the time of writing.
The market appears to be in dire straits as uncertainty grows about the price’s next direction.
TIA faces more token unlocks
TIA There will be a major token unlock that directs the released tokens to research and development for the blockchain. Token unlocking distributes new tokens to the market, increasing the supply of the asset and affecting its price.
The unlock will see approximately $62,000 released in less than 24 hours, followed by another $62,000 within 48 hours; This is an amount that will likely move the market significantly.
Beyond that, Celestia’s total value locked (TVL) remains at $0, showing just how poor the blockchain’s performance is. The chain generated just $53 in fees the other day, which underscores this point.
The combination of weakening on-chain performance and expected volume growth puts Celestia at significant risk.
Financing and capital flows
Despite weakening on-chain metrics and the planned token unlock, sentiment on TIA has turned clearly positive, with investors showing a growing long bet pattern in the market.
According to the latest data, the Funding Rate data over the past day has increased significantly, reaching roughly 0.0049% on the chart. A positive Funding Rate means there are more bulls than bears in the market, as measured by the scale of open leveraged positions on the asset.
In addition to this outlook, a large capital inflow into the market also strengthens the upward trend.
To put this in perspective, Open Interest has increased by 23% in the last 24 hours, reaching $57.52 million during this period.
The rising Funding Rate in a period when Open Positions also increase signals that new capital flow is directed to take long positions in the market.
Clearance levels are tight
Liquidation heat map analysis, which identifies clusters of buy and sell orders on the chart, shows that TIA is sitting in a tight spot from a liquidity perspective.
The asset carries sell orders distributed above the price, which are matched by buy orders distributed equally deep below the price.
This means the price can move in either direction; The asset can move up or down as both clusters have the same impact on the price and liquidation clusters are known to act like magnets.
However, given the market’s tight position, momentum will be the key determinant of where prices change direction. Since the bulls are currently in control, there is a high probability that prices will rise from current levels in the short and near term.
Final Summary
- Celestia will release a large amount of new tokens to the market in the next two days, which may increase selling pressure on the price.
- Traders betting on the upside are growing rapidly, indicating that many expect the price to rise in the near term.
