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Celestia Price Jumps 20% This Week but TIA Must Reclaim $11.50 for Bullish Confirmation

Last Updated May 29, 2024 9:18 AM
Valdrin Tahiri
Last Updated May 29, 2024 9:18 AM

Key Takeaways

  • The Celestia (TIA) price has broken out from a 107-day descending resistance trend line.
  • Despite the breakout, it still traded below two Fibonacci resistance levels.
  • Has TIA started a new uptrend, or is this a relief rally before another drop?

TIA was one of the best performers in the cryptocurrency market starting in November 2023, increasing by 900% and reaching a new all-time high in February 2024. However, the trend reversed afterward, and the TIA price fell by 50%.

Nevertheless, the price showed signs of life with a breakout from a long-term resistance trend line. This begs the question: Is it just a bounce leading to new lows, or has TIA finally begun its bullish trend reversal?

TIA Creates Higher Low, Breaks Out

The daily time frame TIA price chart shows a descent under a descending resistance trend line since the all-time high of $21.14 on February 10. The downward trend culminated with a low of $7.28 on April 13. This was the lowest price in 135 days.

Afterward, TIA  began an upward movement and created a higher low on May 15, the first step in the formation of a bullish structure.

On May 28, the TIA price broke out from the trend line, which at the time existed for 107 days. The breakout is a sign the correction is over.

TIA Price Breakout
TIA/USDT Daily Chart | Credit: TradingView

Before the breakout, the daily MACD and RSI generated bullish divergences, which often lead to a bullish trend reversal. Alongside the breakout, the MACD moved above 0 and the RSI moved above 50, confirming the bullish reversal.

The next closest resistances are at $12.60 and $15.85. These are both horizontal and Fibonacci resistance levels.

TIA Wave Count Gives Bullish Price Prediction

The wave count aligns perfectly with the bullish readings from the price action and indicators. Starting in November 2023, TIA completed a five-wave increase (white) and a W-X-Y correction afterward (black). The ratios of the correction suggest the bottom is reached.

Firstly, waves W:Y had an exactly 1:1.61 ratio, the second most common in such structures. Secondly, both waves were perfectly contained inside descending parallel channels. 

TIA Price Correction
TIA/USDT Daily Chart | Credit: TradingView

Finally, the correction took exactly 0.618 times the upward movement, another sign the decrease is over. When combined with the price breakout and RSI/MACD divergences, it is probably that TIA has started a new upward movement.

If this is the case, TIA started a new five-wave upward movement on April 13 (white). A potential target for the top of wave three is at the 0.618 Fibonacci retracement resistance at $15.85. Then, wave five could end close to the all-time high of $21.14.

TIA Wave Count
TIA/USDT Daily Chart | Credit: TradingView

A daily close below the resistance trend line will put this bullish TIA price prediction at risk. In that case, it is likely the correction will deepen toward $7.

TIA Price Can Double in June and July

The TIA price has recovered well since its April 13 lows, creating a higher low and breaking out from a descending resistance trend line. The wave count also increased the likelihood that the correction is complete. If this is the case, TIA can gradually increase toward its all-time high of $21.24.

A daily close above $12.60 will confirm this possibility, while a close below the resistance trend line will put the bullish prediction at risk.

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