TIA coin, the native cryptocurrency of the Celestia Network is making strong moves gaining more than 50% over the last week. As of press time, the TIA price is up 6.33% and is currently trading at $19.82 with a market cap of $3.1 billion.

What’s Behind the TIA Price Rally?

In a notable surge, TIA, the native cryptocurrency of Celestia, has experienced a substantial rally, and several factors seem to have contributed to this impressive performance.

Firstly, the surge in staking activity and the rapid growth of unique wallets is a noteworthy catalyst. Recent data shared by @layerggofficial on Twitter indicates that Celestia’s staking unique wallets have surpassed 300,000, marking a remarkable doubling within just one week. This surge not only reflects a significant increase in stakers but also suggests a growing confidence in Celestia’s long-term potential among new users.

Moreover, being a relatively young project launched in October 2023, Celestia appears to be capitalizing on positive community sentiment and leveraging its first-mover advantage in a specialized niche. Positioned as the “first modular blockchain” with a primary focus on scalability, Celestia presents a distinctive value proposition in the highly competitive cryptocurrency landscape. This unique positioning is likely contributing to the project’s success and the recent rally of its native token, TIA.

What Do Technical Charts Suggest?

Despite positive fundamentals, TIA appears to be exhibiting signs of overextension on its charts, as per CaptainAltcoin.  On the daily timeframe, TIA made a strong breakout from its trading range, entering a phase of price discovery. However, following this sharp upward movement, the token now appears poised for a potential pullback.

An illustrative point is the daily Relative Strength Index (RSI), which has surged to 73. Readings surpassing 70 often indicate overbought conditions, implying a potential upcoming reversal. A closer examination of shorter timeframes unveils similar technical indicators of exhaustion. Both the 4-hour and 1-hour RSI are signaling overbought conditions at 70 and 77, respectively. This also increases the likelihood of a short-term reversion play.

Potential support levels for the anticipated retracement in Celestia’s token (TIA) are outlined by upside Fibonacci projections, encompassing key Fib levels at: $17.5 (23.6% retracement), $16.2 (38.2% retracement), $15 (50% retracement).

The technical indicators show that the TIA price rally looks overextended, signaling a forthcoming pullback ranging from 15% to 25% in the imminent days or weeks.

The post Celestia Network’s TIA Price Up 50% In A Week, What’s Behind the Rally? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am