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By the end of 2023, the local token of the Celestia network, TIA, continues to face a difficult process. The Celestia price remains at $5.15 after a drop of over 13% in the last 30 days. If this trend continues, indicators suggest TIA could move towards a critical support level, increasing its losses.
Will Celestia Price Drop?
During the airdrop events last year, TIA’s Relative Strength Index (RSI) value was reflected as 38.86 in the charts. Considering that RSI evaluates overbought and oversold conditions, this situation may indicate that it is approaching the oversold region. A drop in the RSI value below 30 would mean that overselling is occurring.
If there is such a decline in momentum, TIA’s price may continue to fall. Consequently, the value of the cryptocurrency could drop below $5.
On the other hand, investors taking positions in derivative exchanges were also seen moving in a downward direction. The Funding Rate seen in on-chain data reflects this.
As of the time of writing, TIA’s Funding Rate is in the negative region, reinforcing the idea that market participants do not expect a price jump.
However, this situation was also valid for most of the past month, reflecting the market’s short-term skepticism towards TIAA.
What Will Be TIA’s Price?
As of the time of writing, TIA has been moving within a descending triangle since July 22 (below). Looking at this formation, while the flat support line consolidates on a fixed plane, the price reaches lower peaks and returns.
Generally, the formation of lower peaks represents a decline and may bring a breakdown. On the other hand, the Fibonacci Retracement indicator provides insights into the areas where the price could start its next upward or downward process, as each ratio defines support and resistance levels.
The notable Fib ratios for TIA are 23.6%, 38.2%, 61.8%, and 78.6%. In the above chart, TIA’s price appears to have fallen below the 23.6% nominal retracement ratio, and if selling pressure increases, TIA’s value could drop to $4.13.
On the other hand, the Money Flow Index (MFI) indicated that liquidity was starting to increase in Celestia, and if this continues, TIA’s price could rise to $5.98, eliminating the bearish outlook.
