Celestia (TIA) has faced a severe price drop over the past two weeks, with its value plummeting by nearly 30%. This dramatic decline has resulted in the largest outflows in 2025 thus far, triggering a sense of panic among investors. The price crash has also contributed to an increased level of fear in the market, with many TIA holders choosing to pull their funds, adding additional downward pressure on the asset.

The Cause of the Price Drop

The drop in Celestia’s price can largely be attributed to broader bearish market conditions. Like many other cryptocurrencies, TIA has felt the impact of the overall market downturn, which has led to a reduction in investor confidence. This has intensified selling pressure, and many investors have exited their positions, accelerating the asset’s price decline. The Chaikin Money Flow (CMF) indicator, a tool used to track capital inflows and outflows, has reflected this trend, marking the largest selling activity seen in 2025. The CMF has highlighted the significant outflows from Celestia, which correspond to the ongoing price decline.

Despite the negative sentiment, there has been a recent uptick in the CMF, suggesting that some new investors are beginning to view Celestia’s lower price as an opportunity for entry. This shift could potentially help stabilize the asset’s price and provide the foundation for a recovery, though much depends on how the market conditions evolve in the coming weeks.

Bearish Momentum and Oversold Conditions

The Relative Strength Index (RSI) for Celestia, which measures the asset’s price momentum, currently indicates a bearish trend. The RSI is stuck below the neutral line at 50.0 and is approaching the oversold threshold of 30.0. Historically, when an asset’s RSI reaches or drops below this level, it signals that the selling momentum may slow down, as traders begin to view the asset as undervalued and start accumulating positions. In other words, the RSI suggests that Celestia may be nearing a price reversal, though this will depend on the market’s response to oversold conditions.

Currently, Celestia’s RSI stands just above 30, which has historically been a signal that the asset is undervalued and may be poised for a rebound. However, while the bearish momentum remains strong, the low RSI points to the possibility of a shift in sentiment. If the selling pressure diminishes and buyers begin to re-enter the market, Celestia could see a resurgence in its price.

Key Price Levels to Watch

At the time of writing, Celestia is priced at $2.62, a nearly 30% decline from its price two weeks ago. The asset is holding just above the critical support level of $2.53. If the market sentiment improves and the RSI enters the oversold zone, Celestia may find enough buying interest to initiate a recovery.

A successful bounce from the $2.53 support could see Celestia push through the $2.73 resistance and make its way toward $2.99. This would signal the beginning of a recovery rally and could set the stage for further price appreciation as market conditions stabilize.

However, if Celestia fails to hold the $2.53 support, it could trigger a further price decline, with the next support level positioned at $2.27. A breakdown below this critical level would invalidate the bullish outlook and could extend the asset’s downtrend, deepening the losses for investors.

Market Outlook

Celestia is currently in a precarious position. While it faces significant bearish momentum, several technical indicators suggest that the market could be nearing a turning point. The uptick in the CMF and the RSI’s approach to the oversold zone could signal that the asset is oversold and may be due for a reversal. However, investors should remain cautious and monitor key support levels like $2.53 and $2.27. These levels will determine whether Celestia can recover or face further losses. If the market sentiment turns bullish, Celestia has the potential for a rebound, but its price trajectory will largely depend on how the broader market performs in the coming weeks.