Celestia (TIA) is facing growing bearish momentum as its price continues to spiral downward, raising alarm among investors and traders. The altcoin has lost approximately 12% of its value since the start of the trading week on June 30, with the downtrend showing little sign of slowing. Technical signals and on-chain metrics now suggest that a drop toward the psychologically significant $1 level is becoming increasingly likely, unless a sharp reversal can materialize.

At the time of writing, TIA is trading just above $1.31, a key local support level. However, that support appears increasingly fragile as selling pressure mounts. If this level is breached, it would signal a break in market structure, reinforcing the current bearish narrative and potentially accelerating TIA’s descent toward $1.2 or even the $1 threshold—a round-number support level that often attracts psychological buying interest but also acts as a magnet during steep declines.

Recent data from Coinalyze reveals a notable increase in Open Interest even as TIA’s price has declined. This combination typically indicates aggressive short selling activity, with traders betting that the asset’s value will continue to fall. The Funding Rate also turned negative on June 30, meaning that short positions were paying a premium to hold their trades—a clear sign that bearish sentiment was dominating the market. Although the Funding Rate has since climbed back into positive territory, the overall tone remains cautious.

Other on-chain indicators further confirm the weakening outlook. The spot Cumulative Volume Delta (CVD) has been in a steady downtrend, signaling increased selling pressure in the spot market. This suggests that market participants are actively offloading TIA, adding to the weight of the ongoing sell-off.

From a technical standpoint, the 1-day chart shows that Celestia’s price has been in a consistent downtrend since mid-May. Key indicators like the Accumulation/Distribution (A/D) line have mirrored the price drop, indicating that sellers have remained in control throughout the decline. Meanwhile, the Chaikin Money Flow (CMF) has remained below the critical -0.05 level for much of the past month. This persistent reading reflects significant capital outflows from the TIA market and reinforces the broader bearish momentum.

The moving averages also offer no relief for bulls, with both short-term and long-term averages continuing to slope downward. These trends suggest that not only is current momentum negative, but any short-term rallies are likely to face stiff resistance.

One area of interest for traders is the liquidation heatmap, which shows a dense liquidity zone between $1.27 and $1.33. According to data from CoinGlass, this cluster of liquidity could serve as a magnet, drawing the price down into the range before any potential bounce. If TIA does reach this level, bulls may attempt to reclaim control—but only if enough buying pressure emerges to offset the prevailing selling activity.

Unfortunately, the fundamentals offer limited hope in the short term. Data from CoinMarketCap reveals that approximately 995,000 TIA tokens are being unlocked daily, adding a steady stream of potential selling pressure to an already weak market. In order for a meaningful reversal to occur, this constant supply must be met with a surge in demand—something that, so far, the market has failed to demonstrate.

In conclusion, Celestia’s outlook remains firmly bearish across both technical and on-chain metrics. With critical support levels under threat and no clear signs of accumulation, traders and investors are advised to remain cautious. Unless the $1.31 zone can hold and attract strong buying interest, a drop toward the $1 mark appears not just possible—but probable. For now, the bears remain firmly in control, and the path of least resistance continues to point lower.