Read

Celestia

Celestia could face potential selling pressure by the end of October due to its major token unlock event, Illia Otychenko, Lead Analyst at CEX.IO, told crypto.news. 
On Oct. 30, 175 million Celestia (<a href="https://crypto.news/price/celestia/" target="_blank">TIA</a>) tokens, accounting for 16.4% of its total supply, will enter its circulating supply as the modular blockchain becomes one-year-old. These coins are valued at roughly $1 billion at current price levels. 
Otychenko pointed out three key points that could trigger bearish momentum for the TIA price in the upcoming token unlock event:&nbsp; 
<ul class="wp-block-list"> 
 <li>Early unlock: The network launched just a year ago, and this is its first major unlock since the initial launch. Additionally, the Oct. 30 release marks the beginning of subsequent monthly unlocks. Historically, tokens that have distributed less than 70% of their total supply tend to have larger volatility during their unlocking events, according to the 6MV <a href="https://6thman.ventures/writing/we-analyzed-5000-token-unlocks-this-is-what-we-found/" target="_blank" rel="nofollow">report</a>.</li> 
 <li>Large unlock: TIA is set to nearly double its circulating supply in a single event as its circulating supply will increase by 82% — far beyond the 1% threshold where negative price impact typically begins to emerge.</li> 
 <li>Profit-taking opportunity: Approximately 67% of tokens within the upcoming unlock will go to seed and series A and B investors, who are currently sitting on 59,400% and 1,800% profits, respectively.&nbsp;</li> 
</ul> 
 You might also like: <a rel="" href="https://crypto.news/buterin-outlines-next-steps-for-ethereums-proof-of-stake-evolution/"> Buterin outlines next steps for Ethereum’s proof-of-stake evolution </a> 
The CEX.IO lead analyst says that “with TIA underperforming in 2024,” down by 70% from its all-time high of $20.9 in February, “these early investors might be inclined to sell.” 
According to Otychenko’s analysis, the activity on the Celestia network has significantly increased this year while its fees have declined. This shows reduced revenue and short-term pressure on the TIA token, but for the long term, “this dynamic can be a positive signal.” 
Moreover, the analyst explains that TIA could face a short squeeze due to the massive token unlock event and potential profit-taking from early investors.&nbsp; 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “If Celestia does not see a surge in positive activity after the token unlock, or if a broader altcoin rally does not materialize to support the asset, the TIA token could face a price decline exceeding 20% following the release.” <cite>Otychenko told crypto.news.</cite>
</blockquote> 
On Sept. 23, the Celestia Foundation <a href="https://crypto.news/celestia-foundation-secures-100m-in-new-fundraising/" target="_blank">announced</a> a $100 million funding round, led by Bain Capital Crypto. This helped the TIA price <a href="https://crypto.news/celestias-tia-jumps-14-following-new-funding-round/" target="_blank">surge</a> 14% in less than 24 hours as the <a href="https://crypto.news/ada-tia-wif-see-positive-sentiment-can-they-capitalize-on-it/" target="_blank">positive sentiment</a> surrounding the asset significantly increased.&nbsp; 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1162" height="681" src="https://crypto.news/app/uploads/2024/10/TIAUSDT_2024-10-14_14-09-34.png" alt="Analyst on why Celestia could face 20% correction - 16" class="wp-image-14303516">
 <figcaption class="wp-element-caption">
 TIA price – Oct. 14 | Source: <a href="https://crypto.news/price/celestia/" target="_blank">crypto.news</a>
 </figcaption>
</figure> 
TIA is up by 3.4% in the past 24 hours and is trading at $6.12 at the time of writing. Its market cap is currently sitting at $1.33 billion with a daily trading volume of $227 million. 
 Read more: <a rel="" href="https://crypto.news/bome-hits-2-month-high-as-altcoin-market-signals-up-only-season/"> BOME hits 2-month high as altcoin market signals “up-only season” </a>

Analyst on why Celestia could face 20% correction

crypto.news

Other articles published on Oct 14, 2024

SEC Faces Legal Challenge as Bitnomial Disputes XRP Security Status

Bitcoin Is Soaring Again: The Market Is Getting Excited About This Recovery.

Market Analysts Share Insights on Bitcoin, ETH, XRP, and SOL Predictions

Bitcoin Price Rally: Strong Buy Walls Signal New Bull Trend Above $64K

Crypto News Today (Oct 14th, 2024): BTC Price at $64k, Altcoin Season Bullish Signs Strengthen!

Bitcoin buy walls now sufficient to neutralize prevalent sell walls

Join our free newsletter for daily crypto updates!