Celestia (TIA) Price Caught in an Obscurity Trap: What’s Next?

TIA, the native token of the modular blockchain project Celestia, continues to experience rough times. Trading at $5.32, the price represents a 12.37% decline over the past 30 days.

Over time, indicators show that a TIA can extend its losses as it approaches a critical point. Here's what to expect.

Celestia holders may have to deal with another setback.

A daily chart review reveals that the Relative Strength Index (RSI) reading is 38.86. RSI is a technical indicator that measures the speed and price changes of a cryptocurrency. Additionally, the oscillator determines whether the asset is overbought or oversold.

When the reading is 70.00 or higher, the asset is overbought. But a reading at or below 30.00 indicates an oversold condition. Therefore, a decrease in the RSI on the Celestia chart indicates that the token may be heading towards the oversold zone.

If the momentum reading continues to slide, TIA prices may continue to decline. If that happens, the price of the cryptocurrency could drop below $5.

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Consequently, the current state of cryptocurrency has led traders to take positions that favor a bearish bias in the data market. Funding rates, as shown by chain data, reflect this.

The funding rate represents the difference between the cryptocurrency contract price and the spot price. A positive reading indicates bullish sentiment from traders, while a negative reading indicates that the perpetual price trades lower than the spot price, indicating bias.

At press time, TIA's funding rate is in negative territory, reinforcing the idea that market participants are not anticipating rate hikes.

However, this was the case for most of the last month, which reflects the uncertainty surrounding the broader market in the short term.

TIA Price Forecast: Will Liquidity Rise?

As of this writing, TIA has been trading in a descending triangle since July 22nd. In this pattern, the price is hitting lower highs and the flat support line is converging in the same area.

Normally, this pattern is bearer, and if the signal does not have buying power, another breakdown may occur. Furthermore, the Fibonacci Retracement indicator shows the levels to which the price may move next, as each ratio identifies support and resistance zones.

The most important Fib ratios include 23.6%, 38.2%, 61.8% and 78.6%. From the chart below, TIA's price has fallen below the nominal return of 23.6%. If selling pressure increases, TIA price may drop to $4.13.

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However, the Cash Flow Index (MFI) shows that the Celestia token is starting to increase in liquidity. If this continues, TIA's price could rise to $5.98, and the warrant would be rejected.