The modular blockchain platform Celestia is set to execute a significant token unlock this October, with approximately $1 billion worth of TIA tokens poised for release. Many holders are already liquidating their tokens ahead of this event.
If selling pressure escalates, the price of TIA could decline by 30%. This analysis explores key insights as the unlock date approaches.
Celestia Traders Liquidate Tokens
According to Token Unlocks data, Celestia will unlock 175.56 million TIA tokens on October 30, with an estimated value of around $1 billion, representing 81.86% of the circulating supply. These tokens will be allocated to initial supporters, seed investors, and core contributors.
The prospect of a substantial token unlock can frequently cause uncertainty and negative sentiment among investors, prompting them to divest their holdings prior to the event. This trend has been evident with TIA, which has seen a surge in selling pressure over the last week.
Currently, TIA trades at $5.12, reflecting an 18% decrease in price over the past week. This decline positions it as the largest loser among the top 100 cryptocurrencies by market cap during this timeframe. The token’s waning Relative Strength Index (RSI) further corroborates the downturn in demand for TIA in recent days.
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This metric helps identify an asset’s overbought or oversold status. It ranges from 0 to 100, with readings over 70 suggesting an overbought condition likely to lead to a price drop, while readings below 30 indicate potential oversold conditions that could trigger a rebound.
With an RSI of 46.42, TIA demonstrates that current selling activity surpasses buying pressure, though it does not indicate extreme market conditions. This neutral reading suggests a tendency towards selling pressure.
Additionally, TIA’s negative funding rate underscores the bearish sentiment in the market. Currently at -0.022%, it suggests futures traders are anticipating further price decreases.
TIA Price Outlook: 30-Day Low Expected
A negative funding rate indicates a greater number of traders are shorting the asset compared to those taking long positions. This situation creates downward pressure on the asset’s price, reflecting a lack of confidence in significant price increases.
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Should selling pressure continue, TIA’s price could drop 30% to $3.72, a level not seen since September 4. Conversely, if market sentiment shifts from bearish to bullish, causing a rise in demand, TIA’s price could escalate towards $10.37.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be construed as financial or investment advice. BeInCrypto strives for accuracy and neutrality in reporting; however, market conditions may change without prior notice. Always perform your own research and consult a financial professional before making any investment decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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