During Wednesday’s trading session, Celestia price witnessed a 6% plunge to reach $4.9, while its market cap fell to $1.09 Billion. Despite the broader market recovery, the sharp drop is likely fueled by bearish market sentiment surrounding the upcoming token unlock. Will investors fear pushing the TIA price below the $5 line or unlock the impact it has already priced in?
Can Celestia Price Hold $5 Line Amid Today’s Massive Token Unlock?
The modular blockchain network Celestia is set to release 176 million TIA via token unlock today, valued at around $900 million. Typically, such unlocks add significant supply pressure on an asset, suggesting that the Celestia price could drive a prolonged correction.
However, the crypto analyst Nemi highlights why the actual impact of the selling pressure could be less severe than anticipated.
Out of the 176M TIA, approximately 92 million are not staked, leaving them potentially available for sale. However, the remaining tokens are still locked in staking, reducing immediate sell pressure to around $469 million.
Moreover, the Celestia Staking data reveals that 739 million tokens are locked at a 10.65% annual percentage rate (APR). This strong incentive for holders indicates the investors may continue to stake their tokens rather than liquidate.
With the crypto market today, analyst notes a gradual shift towards a bullish outlook in market sentiment, with short positions unwinding as indicated by declining funding rates.
Therefore, the upcoming token unlock could trigger initial volatility, but the staked token has significantly reduced the selling pressure, potentially preventing a drop below $5.
TIA Chart Analysis Signals Major Support Amid Token Unlock
In a recent tweet, market analyst trader_sam highlights key support zones for Celestia price, ranging from $4.5 to $5. The TIA price is currently retesting this bottom support, recuperating the bullish momentum for the next leap.
The higher low formation at this support accentuates the presence of sufficient demand pressure to drive a bullish reversal. If the support holds, the crypto traders signal a potential surge to $6.5, accounting for 32% growth.
On the contrary, if Celestia price breaks below the blue support zone, the bullish thesis will get invalidated, which could accelerate the market selling pressure
The post Will Celestia Price Loss $5 Line as 176M TIA Tokens Unlock Today? appeared first on CoinGape.
