Tough times for Celestia! Will bears drive TIA to $1?

• TIA saw increased short selling, signaling that bearish sentiment was prevalent.
• The 1-day price action also reflected a steady downtrend, and a move below $1.31 would reinforce the bearishness.

Celestia [TIA] had a bearish outlook for both the short and long term. Since the trading session opened on the 30th of June, the altcoin has shed 12%.

It appeared likely to head toward $1.2 or toward $1, the psychological round number support.

Data from Coinalyze showed that over the past couple of days, the Open Interest had periods where it surged higher while Celestia prices were falling. This was indicative of short selling.

Moreover, over the past 24 hours, the Funding Rate dropped into negative territory. At the time of writing, it has climbed back above zero.

The negative Funding Rates showed that short positions were paying longs on the 30th of June, a sign that the overall market sentiment was bearish.

The spot CVD has also been in decline, underlining increased selling volume.

Celestia spirals lower

The 1-day chart showed that the bearish pressure over the past few days was not an isolated phenomenon. TIA has been falling lower since mid-May.

The A/D indicator has followed the price’s downtrend, showcasing persistent selling volume.

The CMF corroborated this finding. Over the past month, its reading has been consistently below -0.05, which signaled sizeable capital outflow from the TIA market.

The moving averages also agreed that the momentum was firmly bearish.

Examining the price action, the local low at $1.31 was likely to be broken soon. If this occurred, it would mark a bearish market structure break, an indication to traders that the downtrend was continuing.

The 1-month liquidation heatmap offered TIA bulls some hope. The $1.27-$1.33 zone had a liquidity cluster that was likely to beckon the price lower.

Once this magnetic zone was swept, it was possible that the token could see a bullish reversal.

For this scenario, the selling pressure should be replaced by strong demand for the altcoin. CoinMarketCap data showed that 995k TIA was being unlocked daily.

The steady unlocks and the already existing sell pressure must be overwhelmed, but the evidence at hand did not show this was likely to occur soon. Therefore, traders and investors can maintain their bearish bias.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion