- Tia tapped a falling channel support that caused earlier rebounds, making it an important level to view.
- Will this recent eruption of purchase activity be sufficient to push the price of Celestia considerably higher?
Celestia [TIA] 11% in the last 24 hours, dragged down by the same market headwind that sent Bitcoin [BTC] Tumbling from $ 106k to $ 102k.
Despite the decline and increased geopolitical tensions, investors seemed to treat the dip as a buying option.
Is this another case of smart money that comes in, or a wrong reading of a weakening trend?
Accumulation is increasing – what are investors planning?
Tia has seen a remarkable increase in accumulation in the last 24 hours in the midst of the continuing fall in the market.
According to Coinglass’s Spot Exchange NetflowAbout $ 401,000 TIA was purchased during this period and pushes the weekly total to $ 6.94 million.
In fact, this meant the highest weekly inflow of token in more than three weeks.
Source: Coinglass
This interest was not limited to spot markets.
The open interest weight financing interest Came positive at 0.0002%, which shows that traders are still leaning bullish despite volatility.
If those metric trends are higher, this would be a reflection of the growing conviction of the long side of participants in the derivatives.
Accumulation is slowly gaining strength
Indicators in the chain have supported the buying thesis.
At the time of writing, the accumulation/distribution (a/d) line climbed modestly to 39.85 million, which shows that more tokens are bought than sold.
Of course this builds up a case for a slow but steady intake of the question.
Source: TradingView
This is further confirmed by the Money Flow Index (MFI), which moved to 32.15.
Although still under 50 Mark, this increase indicates that liquidity returns, which may make the stage for a more sustainable move.
Will history repeat TIA?
The analysis of Ambcrypto showed that the current purchasing pressure emerged, just when Tia was traded on the graph at an important level of support.
This support lies on the lower limit of the falling channel, which caused a revival on three earlier occasions.
Although the prospects of this level remain bullish, Fibonacci retracement analysis reveals two important obstacles on the way to the resistance of the channel.
Source: TradingView
The first resistance level is $ 1,606, followed by $ 1,732.
If Tia breaks beyond both resistance levels, Bulls can focus on $ 1.834, which implies a rally of 30% of the current prices.
That said, not breaking out can mean more lateral action until a new momentum builds, especially if the liquidity cools down again.
Credit : ambcrypto.com
