The asset is trading within a defined channel, with current technical indicators suggesting a potential move lower.
The divergence between the Money Flow Index (MFI) and TIA's price may also contribute to this picture.
Celestia [TIA], at the time of writing, is facing a bearish trend, marked by a 7.47% decline over the past 24 hours. As expected, this pullback has somewhat erased the gains the altcoin had accumulated over the past week, especially under increasing selling pressure.
Therefore, consider potential scenarios for TIA's price movement as different perspectives on the market arise. These perspectives can emphasize uncertainty, but also open the door to significant price action on the chart.
TIA Price Dynamics Analysis
Currently, TIA appears to be stuck in a month-long accumulation channel – a pattern that has been going on since July.
After facing resistance at the upper boundary of the channel, TIA has recorded a decline over the past two days. This negative momentum could be a sign of a deeper decline, potentially pushing the price down to the support level of $4,528.
However, a temporary reversal is possible. If TIA reaches the mid-term resistance level at $5.52, a level where significant liquidity is concentrated, this could spark a short-term recovery, pushing the price up before resuming the downtrend.
Source: Trading View
TinTucBitcoin’s analysis also reveals that current trader sentiment is tilted towards a prolonged decline, with TIA expected to drop lower from its current price of $5,895.
Traders are selling aggressively
There has also been a significant increase in selling activity for TIA. This is indicated by multiple Chain metrics such as Funding Rate and Open Interest.
At the time of writing, TIA’s funding rate has dropped to a negative 0.0377%. A negative funding rate means that short positions are paying interest on long positions – an indication that contract prices may be lower than spot prices.
Source: Coinglass
If this trend continues, TIA is likely to fall further from current levels.
Additionally, open interest fell by 4.14%, bringing the value down to $218.13 million. This implies that more traders are opening short positions on TIA – a sign of bearish sentiment in the market.
Divergence shows bullish momentum persists
According to the Money Flow Index (MFI), a technical indicator that measures the flow of money into and out of an asset, there is potential for TIA to change direction – namely, to the upside.
At the time of the action, the MFI was trending up while the price of TIA was falling. This divergence indicates a potential positive signal, suggesting that despite the price decline, there may be increased buying pressure or accumulation.
Source: Trading View
If this trend continues, a reversal could be ahead for TIA's price action.
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