Celestia (TIA) Yet to Find Support After Death Cross, Risks Falling to All-Time Low

Key Takeaways

• Celestia’s price keeps trading below the 20 and 50 EMAs, indicating a bearish trend.
• History shows that TIA risks another correction amid anticipated high volatility.
• With lingering bearish momentum, the altcoin could fall below its all-time low.

Since falling from $5, Celestia’s (TIA) price has failed to establish strong support. Due to this position, the cryptocurrency, which is 83% down from its all-time high, has been teetering on the edge.

As of this writing, TIA’s price is struggling not to fall below $3. However, several indicators show technical weakness. Can TIA defy this move, or is a deeper correction close by? This analysis looks at what could be next for the altcoin.

TIA Remains Below the Key EMAs

In December, TIA’s price attempted to retest the $10 mark but was rejected. Following this rejection, the price dropped below key Exponential Moving Averages (EMAs).

Notably, the 20-day EMA (blue) crossed below the 50 EMA (yellow) on Dec. 21. Known as a “death cross,” this position indicates a transition from a bullish phase to a bearish trend.

Today, TIA’s price still trades below these indicators, signifying that the token has yet to find support that could help erase some of its losses within the last few months.

On the daily chart, CCN observed that TIA’s major support rests around $3.80 and $4.60. Since the token has yet to rebound to these levels, there is a chance that it could experience a deeper correction again.

High Volatility Coming

Furthermore, the 4-hour chart presents a similar setup to the daily chart. Specifically, the Bollinger Bands (BB) has contracted during this timeframe, which is a sign that TIA’s price has been consolidating within a tight range for some time.

However, historically, when the token reaches a low level of volatility, the next move typically is a correction amid an expanding BB. For instance, on Jan. 7, when a similar thing happened, TIA’s price dropped by 20%.

Fast-forward to Jan. 30, when the bands failed to expand. Celestia’s price initially climbed to $4.54. Later, it dropped by nearly 40% to $2.77.

Therefore, if history rhymes with the current pattern, TIA’s will likely experience a double-digit correction.

TIA Price Analysis: New Low Possible

Taking it back to the daily chart, TIA’s price currently trades below the 0.236 Fibonacci retracement level, which is support to act as support.

Trading below this point reinforces the weakness of the cryptocurrency trend. Further, the Relative Strength Index (RSI) remains far below the 50.00 neutral point.

This indicates bearish momentum around the token. If this trend continues and the RSI fails to rise above the midpoint, the Celestia token price could slide to $2.36 in the short term.

On a broader spectrum, falling to this region could send TIA to its all-time low at $2.03. If selling pressure increases at this point, it could drop to another all-time low.

However, if buying pressure around the token rises, TIA could reclaim the $4 support. If this happens, the token’s next move could be a rally toward $6.65.