Celestia Price Analysis: Understanding TIA’s 13% Sell-off and Future Prospects

In recent days, Celestia (TIA) experienced a significant dip, decreasing by 13.55% within 24 hours. This decline stands in contrast to the broader cryptocurrency market's smaller drop of 2.54%. The article examines the factors contributing to Celestia's sell-off and considers potential future movements based on market indicators.

Key Takeaways

Celestia's price dropped 13.55% in a day, underperforming the overall market.
The price fell below critical support levels, indicating a continuation of the downward trend.
Increased market volume suggests a strong selling presence.
Current bearish sentiment may lead the price to target $0.473, with further declines possible.
Positive changes in tokenomics may not immediately bolster the price without increased demand.

Celestia struggles near support — Can TIA avoid deeper losses?

Celestia Faces Significant Selling Pressure

Celestia has been under substantial selling pressure, recording a 13.55% decline over the last 24 hours. This sharp decrease starkly contrasts with the wider cryptocurrency market, which only fell by 2.54%. Weekly losses for TIA have now approached 9%, suggesting a continuous downward trend rather than an isolated shock event.

On the daily chart, TIA's price tumbled after breaching the vital 50% Fibonacci retracement level at $0.527. It subsequently dipped below the 30-day simple moving average (SMA) near $0.518, signaling that the downward trend is likely to continue. As a result, sellers intensified their activity, leading to a significant volume increase of 132%, reaching approximately $70 million. This surge indicates active distribution as traders adopted a defensive stance.

Price Analysis Chart

Source: TradingView

Short-term traders diminished their exposure, and momentum traders entered short positions during unsuccessful rebounds. This trend has persisted over several sessions, solidifying downward control in the market. The Relative Strength Index (RSI), currently at 41.22, suggests weakening momentum but does not indicate total capitulation. Bears are now targeting $0.473 as the next support level, while continued losses could see the price fall to the $0.45 range. Conversely, bulls must reclaim the $0.505 area first. A daily close above $0.527 would alter the market structure and potentially drive prices back to $0.60.

For now, market sentiment remains cautious, with liquidity favoring reactive trades rather than sustained accumulation. Current trends suggest the market might stabilize before making any decisive moves, as participants look for confirmation from trading volume and momentum indicators.

TIA’s Price Battles Against Tokenomics Challenges

The recent performance of Celestia’s price illustrates ongoing tokenomics challenges, albeit with some structural improvements. At its launch in 2023, inflation was approximately 8%. Subsequent upgrades have significantly reduced issuance, bringing inflation down to around 2.5% by late 2025—an important improvement for the asset.

Notably, the most substantial supply shocks have already occurred, as major unlocks for venture capitalists and early investors are expected to conclude by the end of 2025. As 2026 begins, the circulating supply of TIA is expected to stabilize around 870 million, eliminating cliff risks. However, the emissions have not entirely ceased, as staking rewards continue to supply the market with additional tokens, offering annual percentage yields (APYs) of about 8–10%.

Consequently, market dilution persists due to weak demand. From late 2025 into 2026, price movements have reflected a gradual decline rather than frenzied selling, with sellers taking a more calculated approach. Buyers, in turn, are waiting for evidence that the reduction in issuance will lead to increased usage. Looking forward, further cuts in inflation could bolster sentiment; however, without stronger adoption and growth in transaction fees, mere improvements in tokenomics may not lead to a significant and immediate reversal of the trend.

Final Thoughts

As Celestia navigates the challenges of market sentiment and tokenomics, it remains to be seen if future developments will lead to a turnaround. Traders and investors should keep a close watch on key technical indicators and broader market trends to gauge how TIA evolves in this dynamic landscape.