Celestia, a modular blockchain network, is set to face a massive token unlock event valued at approximately $863 million by the end of October 2024. Many token holders have begun selling their assets in anticipation of this event.
The growing sell-off pressure is predicted to push TIA’s price down by as much as 30%, raising concerns among investors.
Surge in Sell Pressure Ahead of Token Unlock
Celestia’s token unlock event on October 30, 2024, will release around 175.56 million TIA tokens, valued at about $863 million. This amount represents 82.15% of the current circulating supply. These tokens will be distributed to early backers, early-stage investors, and core project contributors.
Such significant token unlock events often lead to market uncertainty, and Celestia is no exception. Investors typically worry that a large supply influx will flood the market, prompting them to sell their tokens ahead of the event to avoid potential price drops.
Over the past few days, the selling pressure on TIA has increased considerably, directly affecting the token’s price. Currently, TIA is trading at $4.91, marking a 23% decline in just one week.
This decline makes TIA one of the worst-performing cryptocurrencies among the top 100 by market capitalization during this period. Technical indicators like the Relative Strength Index (RSI) also point to a drop in demand for TIA, confirming this negative trend.
Celestia (TIA) Price Prediction
Currently, TIA’s RSI stands at 40.56, indicating that selling pressure outweighs buying interest. However, the RSI has not yet reached extreme levels, signaling that the market remains in a neutral zone with a bearish tilt. If selling pressure continues to rise, TIA could see further price declines.
Additionally, TIA’s negative funding rate (-0.022%) further strengthens the bearish sentiment in the market. This indicates that many futures traders are taking SHORT positions, betting that TIA’s price will continue to fall. If this scenario persists, TIA is projected to drop by 25% and return to the $3.7 level, last seen on September 7, 2024.
With the market currently favoring sell pressure, investors should carefully consider potential risks ahead of the major token unlock event in October 2024. While the market is still in neutral territory, there is a significant chance that TIA’s price could experience a sharp decline in the coming weeks.
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