Celestia Reveals Upgrade but TIA Price Remains Stuck Under Key Resistance

Key Takeaways

• Celestia announced Shwap, a Data Availability (DA) upgrade.
• The Celestia (TIA) price trades under a horizontal resistance.
• Can TIA break out and begin moving toward its yearly high?

The TIA price increased rapidly near the end of 2023, culminating with a new all-time high of $21.14 in February 2024. However, the price has fallen precipitously, declining by over 70%.

While TIA broke out from a resistance trend line in September, seemingly beginning a bullish trend reversal, it has failed to sustain the increase. Let’s look at its price action and see what lies in store for the rest of the year.

Celestia Announces Shwap Upgrade

The Shwap upgrade improves Celestia’s DA network . It introduces a new storage system and messaging protocol, improving data retrieval efficiency and reducing storage requirements.

The three main core changes from Shwap are:

1. New Data Square storage system
2. Composable networking framework
3. DA Sampling

The upgrades will lay the groundwork for scaling to 1 GB data squares and improve the sampling speed by 22x for full nodes and 12x for light nodes.

Shwap is expected to reach the Mainnet beta sometime in November, though a specific date has not been set yet. The Celestia DA network will not likely see any more notable storage or networking protocol rewrites.

The TIA price has not reacted to the news meaningfully and is creating a small bearish candlestick.

TIA Struggles After Breakout

The daily time frame TIA chart shows that the price has increased since September, breaking from a long-term descending resistance trend line. At the time of the breakout, the resistance trend line had existed for 216 days.

However, the price of TIA has not rallied as parabolically as would be expected after a breakout from a 216-day pattern. Rather, it still trades relatively close to its pre-breakout levels. Furthermore, the price created a lower high on Oct. 13.

Nevertheless, technical indicators do not show any weakness yet. The Relative Strength Index (RSI) and Moving Average Convergene/Divergene (MACD) both generated bullish divergences before the upward movement (green), and their trend lines are still intact.

This suggests that the breakout is still valid, and the price of TIA will soon resume its ascent.

What’s the Next Move?

While the daily time frame is still bullish, the shorter-term six-hour one gives mixed readings because of the price action and wave count.

The price action shows that since August, TIA has traded under the $6.40 horizontal resistance area. While it briefly moved above it on Sept. 23 (black circle), it failed to sustain the increase, creating a deviation.

TIA failed to break out on Oct. 14 (black icon), creating a lower high.

The wave count shows a completed five-wave increase starting on Sept. 6. Since then; TIA has either completed an A-B-C correction (black) or is still in wave C (yellow). Whether the price breaks out from the $6.40 area or gets rejected can determine the future trend’s direction.

In any case, the TIA upward movement could resume once the correction is over.

TIA Price Under Resistance

The Celestia price has shown bullish signs by breaking from a long-term diagonal resistance trend line. However, the failure to break out from the horizontal resistance at $6.35 is concerning for the short-term trend.

While the long-term trend is likely still bullish, the price of TIA needs to reclaim the $6.35 area to confirm its bullish trend reversal.

Read More: Celestia Price Prediction 2024: TIA Price Analysis