Home Altcoins News Celestia (TIA) Faces Steep Decline Amid Growing Bearish Pressure

Celestia (TIA) Faces Steep Decline Amid Growing Bearish Pressure

TIA Price

Celestia (TIA), a cryptocurrency that has been experiencing a steady decline in recent weeks, has taken a sharp downturn, falling 15% in just the last 24 hours. The drop adds to an ongoing trend, with the digital asset now down nearly 40% over the past month. While its market capitalization still stands at $2.2 billion, technical indicators suggest that Celestia is under increasing bearish pressure, and the path forward remains uncertain.

Bearish Signals Mount

The most concerning development for Celestia is the recent formation of a death cross, a widely recognized bearish pattern in technical analysis. This happens when a short-term moving average crosses below a long-term moving average, signaling a potential downturn. The death cross typically signals the start of a prolonged downtrend, which is what many traders are bracing for now.

Alongside this, the Average Directional Index (ADX) has been rising, moving from 31.2 to 35.2 in the past 24 hours. The ADX measures the strength of a trend, and values above 25 indicate a strong trend. With the current reading above 35, the market is signaling that the downward trend is not only strong but likely to continue unless significant buying pressure emerges.

Weakening Bullish Momentum

The Directional Movement Index (DMI), which tracks the buying and selling pressure in the market, further emphasizes the prevailing bearish sentiment. The +DI, which represents buying pressure, has dropped sharply from 22.2 to 11.3, suggesting that bullish momentum has weakened considerably. On the flip side, the -DI, which represents selling pressure, has risen from 14.3 to 33.3, indicating that sellers are firmly in control.

This growing disparity between buying and selling pressure suggests that the market is firmly in a downtrend, making it difficult for Celestia to break free from the current downward momentum without a significant reversal.

Ichimoku Cloud Confirms Bearish Trend

Looking at the Ichimoku Cloud, a popular technical analysis tool, the bearish outlook for Celestia is reinforced. The price of TIA is currently trading well below the cloud, indicating a strong downtrend. The cloud itself, formed by the Senkou Span A and Senkou Span B, shows resistance above the price, making a recovery seem less likely at this stage.

Additionally, the Tenkan-sen (blue line) has diverged downward from the Kijun-sen (orange line), a sign that the bearish momentum is gaining strength. The Chikou Span, the green lagging line, is also positioned below the price and the cloud, further confirming the negative sentiment in the market.

For any recovery to take place, Celestia would need to break back above the cloud. However, with the current technical indicators showing little signs of a reversal, the prospect of a recovery seems slim.

Key Support at $4.54: Can It Hold?

At present, Celestia is holding above a crucial support level at $4.54. This price level has served as a key line of defense for the cryptocurrency, preventing further declines. However, if this support is breached, the price could quickly fall toward the next major support level at $4.10.

A drop below $4.10 could signal a deeper correction, potentially dragging the price down further. The next significant support lies at $4, but for now, traders are closely monitoring the $4.54 level to see if it can hold.

What Lies Ahead for Celestia?

Celestia’s future largely depends on whether it can maintain its support at $4.54 or if further bearish pressure will push the price lower. The market sentiment remains negative, and unless there is a substantial shift in buying activity, a further decline towards $4.10 seems likely.

However, if Celestia can regain momentum and push past resistance at $5.50, a recovery may be on the horizon. For now, though, the outlook remains bleak, and traders will need to watch for any signs of a shift in momentum before making any significant moves.

In conclusion, while the bearish trend for Celestia is undeniable, the next few days could be critical. If the price holds at $4.54, there may be a glimmer of hope for a reversal. However, a fall below this level could see Celestia continue its downward slide, possibly testing the $4.10 level in the near future.

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Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

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