- Despite ranking as one of the top IBC blockchains in terms of active users, it has failed to offset the bearish sentiment.
- Traders remain largely pessimistic, with the majority taking short positions on the asset.
For the past month, Celestia [TIA] has shown a sharp decline, losing more than 12% of its value. The daily chart reflects an extended sell-off, with an additional 6.60% decline as bearish momentum continues to build.
AMBCrypto analysis suggests this may not be the bottom, warning that TIA’s market value could see further declines in the near term.
TIA’s active users are rising, but market sentiment remains bearish
Recently facts highlights a significant increase in the number of active users on the Celestial blockchain (an IBC-compliant chain), the native network for TIA, over the past week.
Inter-Blockchain Communication (IBC) chains such as Celestial enable easy data transfer and interoperability between blockchains. According to the latest figures, Celestial attracted 62,650 active users, securing the second spot among IBC chains in terms of user activity.
Source:
However, the increase in the number of active users has not translated into positive market performance for TIA. Despite the growth, the price of TIA has continued to decline. According to CoinMarketCapthe market capitalization has fallen by 6.29% to $2.14 billion, while trading volume has fallen by a whopping 48.69%.
These numbers reflect declining market confidence, with further analysis pointing to the possibility of continued bearish momentum for TIA.
Bears are tightening their grip on the market
At the time of writing, bearish sentiment continues to dominate the market, reinforcing existing downside signals.
Open Interest, which tracks the total number of unsettled derivatives contracts – specifically futures in this case – has seen a significant drop of 7.33%, to $238.65 million in the past 24 hours.
Source: Coinglass
Moreover, the number of short positions is greater than the long positions, as shown by the Long-to-Short ratio of 0.8328. This indicates that the bearish influence is becoming more apparent.
The low ratio is consistent with the recent liquidation of substantial long positions worth $941.10 thousand, which has contributed to downward pressure on the asset. In contrast, only $71.34k worth of short positions were closed during the same period, further emphasizing bearish dominance.
If this downward momentum continues – which remains the prevailing bias for TIA – the AMBCrypto analysis has identified potential lower targets for the asset.
TIA threatens to fall to $3.6 as bearish pressure increases
Since June, TIA has been trading within a consolidation channel, fluctuating between key support and resistance levels. Such patterns usually precede a sharp breakout, either up or down.
Source: TradingView
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In the market’s current bearish phase, TIA faces two critical downside targets. The first is $3.7, one level that could be tested if selling pressure increases.
Should bearish momentum continue, the asset could see a steeper decline, possibly down to $2.2.
Credit : ambcrypto.com
