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Celestia, the modular blockchain platform, has recently experienced a notable surge in the price of its native token TIA price following a period of sustained market interest.
Over the past seven days, TIA saw its value rise to a high of $7.33 representing a surge of 50%, reaching highs not seen since earlier this year. This rally sparked significant attention among traders and investors alike, driven by optimism surrounding its role in enhancing blockchain infrastructure and facilitating robust market activity.
Bets against further Celestia (TIA) price gains increase
Despite the recent bullish momentum, Celestia’s upward trajectory appears to be facing resistance as traders react with caution.
Funding rates for perpetual futures tied to TIA have flipped negative, a sign that some market participants are betting against further price appreciation.
This skepticism is compounded by Celestia still being down 65% from its all-time high of $20.91, achieved earlier this year on February 10.
Analysts suggest that these negative funding rates, reaching levels not seen since January, reflect a cautious stance among traders who may be anticipating a price correction.
The recent Modular Summit, where Celestia played a pivotal role, provided a platform to showcase its technological advancements and market integrations.
Agenda for Modular Summit 3.0 is now live! 🗓️
— Celestia (@CelestiaOrg) July 9, 2024
Featuring tracks curated by @Blockworks_, Flashbots, @l2beat, and @zkv_xyz ⬇️ pic.twitter.com/bkHrHQzgZr
Despite this positive exposure, TIA faces challenges such as high short interest, indicated by a surge in open interest and negative funding rates.
This divergence in sentiment underscores the market’s uncertainty about whether Celestia’s recent price surge is sustainable in the long term.
Will TIA resume its bullish trend?
Insights from technical analysts and market experts highlight crucial resistance levels, such as the $8.50 mark, which has historically served as a significant consolidation point.
Crypto Jobs, a renowned analyst on X, has stated that seeing that TIA probably touched its monthly low, a pump and recovery toward $10.00 could be an offing.
$TIA – price update: 🚀
— 🧙 Crypto_Jobs🧙♂️ TA & FA 🎯 (@CryptoJobs3) July 9, 2024
➡️In my opinion, regarding the FA behind the project, around 6 – 5$ / tokens, #TIA price remain very undervalue.
-The monthly low has probably been touched. It can be the true bottom and the price will probably never stay around $4 – $5!
-A pump and… pic.twitter.com/Pm8hBckhij
However, for the altcoin to climb towards $10, it must first clear the key resistance zone between 7.00 and 7.050. Failure to clear this resistance zone and closing below $7.00 could see TIA drop towards the support level at 6.350.
The ongoing development and integration of Celestia within decentralized finance (DeFi) ecosystems, particularly through partnerships like the Orderly Network, will be the main drivers for the next TIA cycle. It is worth noting that Polychain and Binance Labs recently invested $5M in Celestia’s liquid staking protocol MilkyWay.
As Celestia navigates these challenges, the upcoming weeks are poised to provide clearer insights into whether TIA can maintain its upward trajectory amidst broader market fluctuations.
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