The modular blockchain network Celestia is set to conduct a significant token unlock in October, releasing TIA tokens worth approximately $1 billion. As the unlock date nears, many holders are preemptively selling their tokens, which could lead to a 30% price drop for TIA.
On October 30, Celestia will release 175.56 million TIA tokens, representing 81.86% of the circulating supply. These tokens will go to early supporters, seed investors, and core contributors. The anticipation surrounding large token unlocks often generates uncertainty among investors, prompting them to sell before the event.
Currently, TIA trades at $5.12, reflecting an 18% decline over the past week, making it the largest loser among the top 100 cryptocurrencies during this period. The Relative Strength Index (RSI) for TIA has also dropped, indicating decreased demand.
The RSI measures whether an asset is overbought or oversold, with values above 70 signaling overbought conditions and below 30 indicating oversold. Currently, TIA has an RSI of 46.42, suggesting a neutral market leaning toward selling pressure.
Additionally, TIA's negative funding rate of -0.022% underscores a bearish outlook, as more traders are betting against the asset.
If selling pressure continues, TIA could dip to $3.72, a price last seen on September 4. However, a shift toward bullish sentiment could propel TIA’s price to $10.37.
