Celestia (TIA) is facing potential further correction as investors pull back from the cryptocurrency. The price of TIA has been consistently forming red candlesticks in recent days, indicating a bearish trend. The decline in price is also attributed to the general downturn in the crypto market.
Investors have been withdrawing from Celestia, as indicated by the significant decrease in Open Interest (OI). Over the past month, the OI has been reduced by 50%, with only $113 million remaining from the original $233 million. This demonstrates that investors are currently prioritizing profitable actions and may not be actively supporting the altcoin.
The correlation between TIA and Bitcoin is high, with a value of 0.96. This means that TIA follows Bitcoin’s price movements closely. With Bitcoin currently in a bearish outlook, trading below $60,000, Celestia’s price is also likely to experience a decline.
The support level for Celestia is currently being tested at $9.2. If this level fails to hold, the price could correct further and reach the next support area at $8.3. Breaking below this level would validate the bearish thesis and potentially lead to a drop in the TIA price to $7.
However, if the $8.3 support floor remains strong and prevents a decline, there is a possibility of a bounce-back for TIA. Reclaiming the $10 level would partially recover the losses and negate the bearish outlook.
It is important to note that cryptocurrency markets are highly volatile, and price predictions are speculative. Investors should conduct thorough research and analysis before making any financial decisions.