- Top modular blockchain Celestia faces native coin TIA price turbulence.
- With nearly half of TIA tokens in circulation, linear unlocks are ongoing.
- Most large investors are reducing positions as TIA slips 79% from ATH.
Celestia (TIA), the altcoin behind the high-end modular blockchain technology, has pursued a bearish price trend for the past two weeks. Despite the chain’s early success, with an all-time high at $20.85 on February 10, 2024, the next nine months saw a steady decline in both price and TIA trading volumes.
$940M In Unlocks Challenge Celestia Price
Since then, Celestia’s market cap has been cut in half from $3.29 billion to $1.73 billion today, even though Celestia certainly remains the largest modular blockchain. Dymension (DYM) takes second place with nearly seven times smaller market capitalization of $270 million, according to CoinMarketCap data.
Celestia’s price is now quickly approaching the Year-To-Date low of $3.72, slipping by over 6% in the latest 24-hour period. While the late October 2024 token unlock splashed a whopping 175.59 million native tokens onto the markets, TIA’s downward spiral has a few additional reasons.
Alongside the cliff token unlock executed on October 30, 2024, at 2 PM UTC, there’s another ongoing unlock. In contrast to the all-at-once cliff unlock, the current linear unlock puts 998.32K TIA tokens in circulation daily, increasing the supply by $4.3 million daily. Currently, 404.4M of TIA coins are circulating out of the 1.08B total.
TIA Struck With Negative Funding Rate
In addition to the large magnitude of cliff and linear unlocks Celestia’s bearish trend is enabled by a constantly negative Open Interest (OI) weighted funding rate. On Derivatives markets, the altcoin lost speculative trader interest in early July 2024, as the funding rates flashed below zero for most days until October 31, 2024.
Conversely, the #52-ranked altcoin Celestia recovered a positive leveraged markets funding rate on October 31, 2024, hours after the cliff unlock. Still, a positive TIA OI funding rate has not held for more than a week since July 2024. As of press time, its price trades at $4.275, according to CoinGecko’s price aggregator.
On the other hand, a TIA price trend reversal relies heavily on large investor behavior. According to the four-hour technical charts, the pattern suggests a further reduction in crypto whale positions, with the Chaikin Money Flow (CMF) dwelling at -0.13. As if that wasn’t enough, the Stochastic Relative Strength Index (StochRSI) is extremely overbought.
On the Flipside
- Huge crypto token unlocks tend to apply short-term sell pressure on the altcoin’s price, but having the majority of coins in circulation minimizes Celestia (TIA) price manipulation risks.
Why This Matters
A coin’s price trajectory typically turns bullish if the demand exceeds the supply, combined with a substantial trading volume and real-world utility cases.
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