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Celestia Staking Surges Despite Yearly Low – Is the TIA Price Correction Nearing Its End?

Published April 18, 2024 1:58 PM
Valdrin Tahiri
Published April 18, 2024 1:58 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The price of Celestia has fallen over 65% since its February all-time high.
  • The decrease led to a new yearly low of $7.88 on April 13.
  • Is the TIA correction finally over, or are new lows in store?

TIA was one of the best performing assets in the cryptocurrency market at the end of 2023. Besides its price rising, users staked TIA in hopes of receiving lucrative airdrops.

There was an abrupt jump in Celestia staking on April 9, but the TIA price fell to a new yearly low four days later. The correction has been ongoing for two months, and when combined with the increase in staking, it leads to the possibility that the bottom is close.

Why is TIA Staking Popular?

Even though the yearly rewards for TIA stakers are not extraordinary, currently standing at 11.75% , Celestia staking became popular because of the possibility of profitable airdrops. One such airdrop was DYM , which was distributed to users who had staked TIA among others.

In order to stake TIA, users have to download a wallet such as Keplr  or Leap , go to the dashboard, select their validator of choice and stake their TIA tokens.

While there is no definite method for selecting validators, users often take into account factors  such as whether the validator has made its identity public, the validator fee and the average delegation size, which is created by dividing the total stake by the number of delegators.

Amount of Staked TIA Supply
TIA Staked Supply Chart | Credit: Staking Rewards

A lower delegation size means that the validator does not rely on a small number of delegators. Additionally, it is recommended to divide stakes across multiple validators to diversify risk.

Currently, 668 million TIA tokens are staked, which represent 67% of the total supply of 1 billion tokens. On April 10, there was a notable jump  with an additional 120 million tokens being staked.

The jump was the biggest daily increase in staking in TIA’s history. Since the entire circulating supply of TIA is 177 million, it is unlikely that the 125 million stake comes from the market.

Rather, it could have been an over-the-counter deal, or venture capital that had not previously staked. The jump in staking has led to speculation that a lucrative airdrop is on the way for Celestia stakers.

Despite this seemingly positive development, the TIA price fell to a new yearly low on April 13.

TIA Falls to New Yearly Low

The TIA price has fallen since reaching its all-time high of $21 on February 10. The downward trend culminated with a new yearly low of $7.28 on April 13. This was a decrease of 65% since the all-time high.

The ensuing bounce (green icon) took the price above the 0.618 Fib retracement level, reclaiming a seemingly lost support level. Despite the bounce, TIA failed to move above the $11.50 area. The area had previously acted as support for 120 days and has now turned to resistance (red icon).

TIA Price Falls After All-Time High
TIA/USD Daily Chart | Credit: TradingView

Alongside the price, the daily RSI fell to an all-time low value of 25 on April 12.

While it bounced afterward, there is no bullish divergence to predict an impending price increase. Furthermore, the indicator is below 50, and its resistance trend line (green) is still intact.

So, a look at lower time frames is needed to determine if the correction is over.

TIA Price Prediction: Is the Correction Over?

The wave count suggests the TIA correction is complete. Starting in November 2023, the price completed a five-wave upward movement that led to the all-time high.

Then, it finished a W-X-Y corrective structure. Both corrective waves were contained inside descending parallel channels, and wave Y had exactly 1.61 times the length of wave W.

TIA Price Completed Correction
TIA/USD Daily Chart | Credit: TradingView

Another factor supporting the completed TIA correction is that the corrective structure had exactly 0.618 times the length of the upward movement. If the count is accurate, TIA will soon begin a new five-wave upward movement that will eventually take it to a new all-time high.

On the other hand, falling below the April 13 low of $7.44 will invalidate the count. Then, TIA  could correct further to $5.20.

TIA’s Next Bullish Wave Incoming?

After a 65% decrease that lasted over two months, it is possible the TIA correction has finally ended. Since TIA paced the cryptocurrency market in late 2023 and early 2024, the completion of the correction could mean that another similar bullish wave will follow, taking TIA to a new all-time high and possibly pulling along the rest of the crypto market.

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