Celestia’s TIA token has recently encountered a significant downturn, sliding over 15% in value over the past week. The token is currently priced at $4.23, hovering close to its year-to-date low of $3.72, initially reached in early September. The downward pressure is raising questions about whether the token will break this support level or find fresh buying momentum to spur a recovery.

The recent sell-off has impacted TIA’s performance on the technical charts, indicating that the token may struggle to reverse its decline without a boost in buying demand.

TIA’s Decline: Technical Indicators Show Bearish Signs

Analyzing Celestia’s TIA token reveals bearish indicators across multiple technical signals. The price has dipped below its Ichimoku Cloud on the daily chart, signaling downward momentum. The Ichimoku Cloud often serves as a guide for spotting potential support and resistance levels, and when an asset’s price falls below this cloud, it suggests a bearish phase. For TIA, the cloud has now become a resistance zone, making it challenging for the price to break back above without a significant increase in buying volume.

The Directional Movement Index (DMI) further reinforces the bearish outlook. The DMI, which measures an asset’s price strength and directional trend, shows TIA’s negative directional indicator (-DI) is positioned above its positive directional indicator (+DI). This alignment indicates that sellers currently have stronger control than buyers, creating a higher likelihood of additional downside.

The lack of upward momentum is evident in these technical indicators, signaling that the price may continue to face resistance in the near term.

Sell Pressure and the Road Ahead for TIA

Currently, TIA’s price is trading close to its support level of $3.72, approximately 13% below its current market price of $4.23. If the selling trend persists, TIA may retest this level, putting the asset’s stability to the test. For now, a break below this low could result in further price drops, intensifying the bearish trend.

However, if TIA experiences a surge in demand and buying volume, a rebound could be on the horizon. A positive shift could see TIA attempting to break through the Ichimoku Cloud’s resistance, specifically around the $5.06 and $5.53 marks. Moving past these levels could open the path toward a higher price target of $7.84, which TIA last achieved in June. This scenario, however, relies on the emergence of substantial buying interest to counter the current selling pressure.

Market Sentiment and the Potential for Recovery

A broader look at market sentiment shows that TIA’s struggle is part of a larger trend affecting various altcoins. The recent downturn in TIA is not unique; it mirrors the cautious outlook held by many crypto investors amid a less-than-optimistic market climate. Celestia’s fundamentals remain strong, but market sentiment and macroeconomic factors may play a key role in determining whether TIA can find renewed momentum.

Moreover, while TIA’s price trajectory remains uncertain, the potential for a rebound is not entirely off the table. Technical traders will be watching closely to see if TIA can defend its $3.72 support or if it will slip further.

For now, the primary focus for TIA holders is whether the token can attract new demand or if the bearish signals will prevail. As the crypto market continues to experience fluctuations, the next few weeks may be crucial in determining whether TIA can recover or if it will continue to test lower support levels.