Over the past month, Celestia [TIA] has seen a significant drop in price, with its market capitalization shrinking by more than 12%. The daily chart reflects ongoing selling pressure, with the price declining another 6.60% as bearish momentum continues to strengthen.
TIA active users surge, but market sentiment remains pessimistic.
Recent data shows that over the past week, the number of active users on TIA's native network, the Celestial blockchain (which supports IBC), has significantly increased.
Cross-chain communication (IBC) chains like Celestial allow for easy data transfer and interoperability between blockchains. According to the latest data, Celestial has attracted 62,650 active users, ranking second among IBC chains in terms of user activity.
However, the surge in active users has not translated into positive market performance for TIA. Despite the growth, TIA's price continues to decline. According to CoinMarketCap data, its market capitalization has dropped by 6.29% to $2.14 billion, while trading volume has significantly decreased by 48.69%.
These indicators reflect a weakening market confidence, and further analysis suggests that TIA may continue to maintain a bearish momentum.
Shorts strengthen their control over the market.
At the time of writing, bearish sentiment continues to dominate the market, reinforcing the existing downward signals.
Open interest tracks the total number of unsettled derivative contracts (in this case, futures), and this metric has significantly decreased by 7.33% over the past 24 hours, down to $238.65 million.
Additionally, the number of short positions exceeds long positions, with a long-to-short ratio of 0.8328. This indicates that bearish influence is becoming increasingly apparent.
The low ratio corresponds with a recent large-scale closure of long positions (valued at $941,100), which increases downward pressure on the asset. In contrast, only $71,340 worth of short positions were closed during the same period, further emphasizing the dominance of bearish sentiment.
With increasing bearish pressure, TIA is at risk of falling to $3.6.
Since June, TIA has been trading within a consolidation channel, fluctuating between key support and resistance levels. Such patterns often indicate a significant breakout, whether upward or downward.
During the current bearish phase of the market, TIA faces two key downside targets. The first is $3.7, which may be tested if selling pressure intensifies.
If the bearish momentum continues, the asset may experience a larger decline, potentially falling to $2.2.
