Celestia Analysis: TIA Price Drops 27% But Is Preparing for a Recovery

The price of Celestia (TIA) has decreased by around 27% since October 25. During that period, this Altcoin has dropped from $6.16 to $4.50, wiping out all the gains TIA had achieved in September.

However, recent analysis suggests that this token may soon begin to recover. Here are the reasons and potential targets in the short term.

TIA Token Dumped

The decline in Celestia's price may be related to various factors, including increased selling pressure and the broader market conditions. But notably, the recent Token Lockup has caused the supply to increase significantly more than the demand, which is the main reason.

Meanwhile, the daily chart shows a slight contraction of the Bollinger Bands (BB) compared to recent days. BB is a technical indicator that tracks the volatility around a cryptocurrency, providing insights into the potential price movement. When the Bollinger Bands expand, they signal high volatility, meaning the price can move quickly in any direction depending on market pressure. However, the recent slowdown in their expansion suggests that the decline in TIA may not continue to accelerate.

Furthermore, the Bollinger Bands also indicate whether an asset is overbought or oversold. When the price touches the upper band, the asset is considered overbought. In the case of TIA, the price has touched the lower band, signaling that it has been oversold and may soon reverse upwards.

The Relative Strength Index (RSI), a momentum-based technical oscillator similar to BB, also supports this view. It assesses whether an asset is overbought or oversold. A reading below 30.00 indicates an oversold condition, while a reading above 70.00 signals an overbought state. On the daily TIA/USD chart, the RSI is at 37.81. Although it has not yet reached the oversold zone, a further decline could confirm this.

TIA Price Prediction: Imminent Bullish Reversal

Meanwhile, the cryptocurrency price of Celestia may continue its downward trend. The chart suggests that TIA could drop below $4.20. However, strong support at $4.12 could trigger a significant recovery for this Altcoin. As shown below, this support level was the catalyst for a 62% surge in TIA's price in September. That doesn't mean the token will repeat that performance. However, it has the potential to rise to $5.23 within a few weeks if the buy-side defends the crucial support.

Conversely, failing to hold Celestia above this critical support could negate that forecast. If this occurs, TIA could further decline to $3.72.

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