Celestia (TIA) Price Plunges to $1.62 Following Failed Resistance Break and Token Unlock Pressure
Darius Baruo Aug 06, 2025 06:11
TIA price drops to $1.62 after failing to break $2.16 resistance, with 90% decline from 2024 peak due to aggressive token unlocks creating sustained selling pressure.
Quick Take
• TIA currently trading at $1.62 (-3.91% in 24h) • Celestia's RSI at 41.49 suggests oversold conditions may be approaching • Failed $2.16 breakout attempt triggered 6.3% sell-off despite Foundation's $62.5M token buyback
What's Driving Celestia Price Today?
The TIA price has faced significant headwinds over the past week, with the most damaging revelation being Celestia's 90% decline from its 2024 peak. This dramatic drop stems primarily from aggressive token unlocks and coordinated selling by early investors, creating sustained downward pressure that has persisted despite broader crypto market recovery.
Most recently, TIA price attempted to break through the critical $2.16 resistance level but failed spectacularly, triggering a 6.3% sell-off that brought the token down to current levels around $1.62. This failed breakout is particularly concerning for bulls, as it occurred despite positive developments including the Celestia Foundation's strategic $62.5 million token repurchase from Polychain Capital.
The Foundation's buyback of 43.45 million TIA tokens was designed to stabilize tokenomics and reduce selling pressure from early backers. While this move initially sparked a brief 4% price increase, the underlying structural issues from ongoing token unlocks have overwhelmed any positive sentiment from the buyback initiative.
TIA Technical Analysis: Bearish Signals Dominate
Celestia technical analysis reveals a predominantly bearish setup across multiple timeframes. TIA's RSI currently sits at 41.49, approaching oversold territory but not yet indicating an immediate reversal signal. The momentum remains weak with the RSI trending downward from higher levels.
The MACD indicator tells a similar story, with Celestia's MACD line at -0.0590 and a histogram reading of -0.0376, confirming bearish momentum remains intact. TIA's stochastic oscillator at 13.89 (%K) suggests the token is in deeply oversold territory, though this alone doesn't guarantee an immediate bounce.
Moving averages paint a concerning picture for TIA price action. Celestia is trading well below all major moving averages, with the 200-day SMA at $2.70 acting as significant overhead resistance. The shorter-term 7-day SMA at $1.65 is providing immediate resistance, while the 20-day SMA at $1.87 represents a more substantial barrier to any recovery attempts.
Celestia Price Levels: Key Support and Resistance
Critical Celestia support levels are being tested as TIA price hovers near the lower Bollinger Band at $1.47. The immediate support zone sits at $1.54, which has held multiple tests but shows signs of weakening. Should this level fail, Celestia could quickly decline to the strong support at $1.31, representing the next major buyer interest area.
On the upside, TIA resistance begins at the pivot point of $1.64, followed by more significant resistance at $2.29. The failed breakout at $2.16 has now established this level as a key resistance that bulls must reclaim to shift the narrative. The Bollinger Band position at 0.1930 indicates TIA is trading near the lower band, suggesting the token is oversold relative to its recent trading range.
Based on Binance spot market data, TIA's daily Average True Range of $0.16 indicates moderate volatility, providing opportunities for active traders while highlighting the importance of proper risk management.
Should You Buy TIA Now? Risk-Reward Analysis
For aggressive traders, the current TIA price level offers a potential contrarian opportunity, but only with strict risk management. The oversold conditions suggested by the stochastic oscillator and proximity to Bollinger Band support could spark a technical bounce. However, any long positions should be sized conservatively with stops below $1.54 support.
Conservative investors should wait for clearer reversal signals before considering TIA positions. The ongoing token unlock schedule and early investor selling pressure create fundamental headwinds that technical analysis alone cannot overcome. The TIA/USDT pair would need to reclaim the $1.87 level (20-day SMA) to suggest any meaningful trend change.
Swing traders might consider the $1.31 strong support level as a potential accumulation zone, but only if broader crypto market conditions remain stable. The risk-reward setup improves significantly at lower levels, particularly if Celestia can demonstrate that token unlock pressure is diminishing.
Conclusion
TIA price faces continued pressure from structural tokenomics issues despite the Foundation's buyback efforts. While Celestia technical analysis shows oversold conditions that could support a near-term bounce, the failed $2.16 breakout and ongoing selling pressure suggest caution is warranted. Traders should focus on the $1.54 support level as a key inflection point over the next 24-48 hours, with any break below likely accelerating declines toward $1.31. Recovery attempts will need to reclaim $1.87 resistance to signal any meaningful trend change for TIA price action.
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