- Celestia token has plunged by over 24% from the highest point this year.
- The crypto token has lost momentum as on-chain metrics wane.
- Celestia’s Wyckoff Method has moved to the markdown phase.
Celestia (TIA) price nosedived this week as its recent rally lost momentum. The TIA token plunged to a low of $5.6 on Tuesday, the lowest point since November 16th. It has dropped by more than 24% from the highest point this year. This crash has brought its total market cap to about $800 million.
Celestia has been one of the most successful airdrops this year. After going public in October, the TIA token surged by over 232% and reached a high of $7.50. At its peak, Celestia had a total market cap of almost $1 trillion.
Celestia did well because of the current state of the crypto industry. Most cryptocurrencies like Bitcoin, Solana, and Tron have all surged. In most cases, airdrops do well when crypto prices are in an uptrend.
For starters, Celestia describes itself as the first modular blockchain network that grows as the number of users in its ecosystem expands. This makes it easy and cost-efficient for people to launch their blockchains.
Celestia’s ecosystem is still small but is growing. Some of the parts of its ecosystem are Cartesi, Aether Games, Astria, CosmWasm, and Berachain. Its on-chain activity, however, has been muted recently, with no major activity going on.
Celestia price prediction
In most cases, cryptocurrencies that have their airdrops during a crypto bull run tend to do well in the near term. This explains why TIA token price has surged hard in the past few days.
The recent rally can be explained through a concept known as the Wyckoff Method. This ancient method explains how financial assets move in a certain period. As shown above, the token initially went sideways, a process known as accumulation. This is a stage where the smart money accumulates an asset for a while.
The second stage is known as a markup, where demand is higher than the supply. This stage is characterized by a higher price. It has now moved to the distribution phase, where the bullish trend fades. Now, it has moved to the markdown phase. It has also dropped below the 25-period and 50-period moving averages.
Therefore, the outlook for the Celestia TIA token is bearish, with the next important support point to watch will be at $4.86, the 50% retracement level. This price is about 15% below the current level,
