Celestia (TIA) Struggles Amid Extended Downtrend: Will Bulls Drive a Recovery?

• Celestia’s short-term bearish trends affect its market positioning.
• Recently, signs have emerged suggesting a potential trend shift for the cryptocurrency.
• The TIA token experienced a significant downward movement, leading to a 70% loss over the last five months.

Discover Celestia’s latest market movements and whether it offers a potential recovery or further decline.

A Possible Bullish Reversal for Celestia

The prolonged decline of the TIA token seemed to halt as it formed a trading range between $8 and $12 in April and May. However, in mid-June, this support level of $8 turned into a resistance point. Notably, the On-Balance Volume (OBV), which was on an uptrend by the end of May, nosedived alongside the token’s price.

Analyzing Market Indicators

There is hope for a bullish movement as TIA recently closed above a critical resistance at $7.1 on July 9th, hinting at a potential market structure shift. Furthermore, the Relative Strength Index (RSI) surged above the neutral 50 mark, indicating an onset of bullish momentum. Yet, the OBV’s failure to surpass local resistance suggests that buying pressure might not be sufficient to support a strong rally. This situation could lead to TIA continuing to consolidate in the $6-$8 range.

Market Sentiment among Futures Traders

From July 10th onwards, TIA witnessed a 14.8% price drop in conjunction with a sharp decline in Open Interest from $174 million to $122 million, marking a 29.9% decrease. Additionally, the Funding Rate has also displayed bearish tendencies in the past couple of days. This scenario illustrates that despite a rise in Open Interest earlier in the week, market speculators remain skeptical about TIA’s ability to recover, leaning towards a potential price drop.

Short-Term Indicators vs. Long-Term Outlook

The recent drop in the spot CVD (Cumulative Volume Delta) further fuels bearish sentiments, negating bullish prospects. Although the daily chart’s market structure break offers some hope, shorter timeframe charts reflect a persisting bearish sentiment. Swing traders are advised to look for acquisition opportunities in the $5.75-$6 support range for potential gains.

Conclusion

In conclusion, while there are early signals of a potential bullish reversal for Celestia, the broader market indicators suggest caution. The observed shift in market structure and RSI positive movement contrast with bearish sentiments in shorter timeframes and declining spot CVD. Traders should keep an eye on the $5.75-$6 range for possible buying opportunities while remaining cautious of the prevailing bearish trends.