The cryptocurrency market has been showing signs of struggle lately, and Celestia (TIA) is no exception. Recent analyses indicate that TIA might continue its downward trajectory, potentially hitting a price of $4.55 in the coming days. This pessimistic outlook is primarily driven by a bearish technical formation known as a “death cross,” which often foreshadows further price declines.

As of now, the overall cryptocurrency market has taken a hit, with a notable 2.63% decrease in market capitalization. This downturn has been particularly harsh on altcoins, and TIA has emerged as one of the top losers, recording a significant drop of 6.53% in its value.

Market Sentiment Turns Sour

The prevailing market sentiment around TIA has shifted negatively, leading to heightened concerns among investors. This sentiment has been compounded by the significant selling pressure that TIA has encountered in recent trading sessions. Since entering a consolidation channel in early July, TIA has oscillated within a defined range, reacting sharply to resistance levels.

Currently, TIA is facing intense selling pressure near its resistance line. As market participants aim to push the price lower, this has been reflected in TIA’s ongoing decline. With the crypto market experiencing a general downturn, many traders are growing increasingly wary of TIA’s short-term prospects.

Technical Analysis: A Bearish Outlook

The Death Cross Indicator

One of the most critical signals indicating TIA’s potential decline is the appearance of a death cross on the MACD (Moving Average Convergence Divergence) indicator. This occurs when the blue MACD line crosses below the orange signal line, suggesting that bearish forces are gaining momentum.

Historically, the emergence of a death cross has often been followed by a sustained decline in both price and market momentum. In TIA’s case, the next likely target appears to be the support region at $4.55. If the bearish sentiment continues unabated, TIA could even drop to its September low of $3.722 or lower.

Bollinger Bands Signal Further Declines

Additional technical indicators reinforce the bearish outlook for TIA. The Bollinger Bands, which measure market volatility, indicate that TIA has moved away from the upper band—typically a sign of overbought conditions. Currently, the asset is trending toward the lower band, further suggesting a continued downward movement in price.

The Impact of Liquidations on TIA

The recent market activity has also led to significant liquidations of TIA positions. According to Coinglass data, approximately $1.24 million in TIA positions were liquidated over the past 24 hours. Of this total, long positions accounted for a staggering $1.17 million, while short positions represented just $75,840.

This disparity in liquidations illustrates a heavily bearish market sentiment, with a greater number of traders expecting further declines in TIA’s price. The forced liquidation of long positions tends to add downward pressure to the asset’s price, potentially creating a vicious cycle of falling prices and increasing selling pressure.

Key Support and Resistance Levels

As TIA continues to navigate this turbulent market environment, it is essential to monitor key support and resistance levels closely. If selling pressure remains intense, TIA could see its price drop to the crucial support level at $4.528, where it might temporarily stabilize. However, without significant buying pressure, further declines could lead TIA to revisit its September low.

Looking Ahead: What Could Change the Trajectory?

For TIA to reverse its current downtrend and regain bullish momentum, a few critical factors would need to come into play. First and foremost, a shift in market sentiment could provide the necessary boost. Positive news, such as regulatory developments or increased adoption.

Additionally, a notable increase in buying pressure would be crucial for stabilizing the price and setting the stage for a potential recovery. Without these factors, TIA may continue to struggle under the weight of bearish indicators and market skepticism.

Conclusion

The outlook for TIA appears increasingly grim as bearish signals mount and market sentiment sours. With a potential drop to $4.55 on the horizon, investors should remain cautious and vigilant in their trading decisions. Technical indicators like the death cross and Bollinger Bands suggest that TIA is firmly in a bearish phase, and unless substantial buying pressure emerges, the downtrend may persist.