Celestia’s TIA up 14%, but weak fundamentals and sell pressure threaten rally
The post Celestia’s TIA up 14%, but weak fundamentals and sell pressure threaten rally appeared on BitcoinEthereumNews.com.
TIA rose by as much as 14% today as bulls managed to stage a reversal that ended weeks of downtrend. According to data from crypto.news, Celestia (TIA) rose to an intraday high of $1.68 on July 7 before settling at $1.65 when writing with a market cap of $1.15 billion. TIA’s rally today follows closely after it broke out of a descending channel pattern on the daily chart. A descending channel, characterized by lower highs and lower lows within two parallel downward-sloping trendlines, typically signals sustained bearish pressure. A breakout towards the upside of a descending channel pattern is generally interpreted as an early indicator of trend reversal in technical analysis. This technical confirmation likely contributed to increased buying activity and the token’s sharp intraday appreciation. There’s also noticeable hype around the upcoming Lotus upgrade, the fourth major version of the Celestia protocol, which would reportedly reduce token inflation, introduce revised staking mechanics, and enhance network interoperability. These developments are widely viewed as positive catalysts for long-term network utility and user growth. As of now, the Lotus upgrade is live on Celestia’s Mocha testnet, with deployment to Mainnet Beta expected in the coming weeks. Bearish overhang persists despite today’s rally On-chain data for Celestia presents a more cautious picture. According to DeFiLlama, the total value locked in Celestia’s DeFi protocols has declined by over 95%, falling from a peak of $64.28 million in March 2024 to just $2.31 million at present. Similarly, daily chain fees, often a proxy for user engagement, have dropped from $3,400 in March to a current average of around $200, reflecting reduced on-chain activity. Sentiment indicators also remain subdued. According to data from social analytics platform Dexu AI, TIA ranks among the lowest in social sentiment across major crypto assets, suggesting a lack of positive engagement…
Filed under: News - @ July 7, 2025 3:27 pm