- Celestia price has declined by 6% in the last two days after achieving a 143% rally in the past week.
- Losing the 23.6% Fibonacci retracement could send Celestia to $5.
- Over the next 365 days, $5.8 million worth of 998.58K TIA tokens are set to be unlocked every day.
Celestia price noted a significant increase since its launch on October 31, adding itself among the cryptocurrencies that left a mark on the market. However, over the next couple of trading sessions, the cryptocurrency might see some decline owing to the barrage of supply set to flow into the market.
Celestia tokens to be unlocked every day
Celestia, a cryptocurrency launched less than three weeks ago, has grabbed the attention of the crypto market for its sudden rise into the list of top 100 cryptocurrencies. With a market cap of $793 million, the altcoin currently has a circulating supply of 141 million TIA.
The surge in demand noted in the past ten days resulted in the cryptocurrency noting a 143% price increase in the past week. However, over the coming days and weeks, there is a chance that Celestia might end up losing these gains since the market is set to be flooded with TIA tokens.
Over the next 365 days, about 998.58K TIA worth over $5.8 million will be unlocked every single day. This brings the total value of TIA set to be unlocked in the next week, month, and year to $40.6 million, $180 million, and $2.1 billion, respectively.
Celestia token unlocks
Naturally, a decline is likely as those who earned their chunk of profits in the last week would attempt to secure it before the value of TIA declines, owing to supply meeting the demand. This should result in a decline in price. Plus, regardless of profit booking, increasing supply tends to diminish the value of an asset over time.
However, if the market gets used to the $5.8 million worth of TIA entering the market every day, the latter case could be invalidated.
Celestia price might surprise once again
Celestia price shot up by 143% in the last seven days before declining by 6% over the previous 48 hours. Trading at $5.61 at the time of writing, TIA is inching closer to the 23.6% Fibonacci Retracement of $6.54 to $2.25, marked at $5.52.
Losing this support line would result in the altcoin seeing lower lows, falling toward the $5.00 mark, which coincides with the 38.2% Fibonacci Retracement line. If the investors decide to sell their holdings anywhere around this mark to prevent potential losses, TIA could end up falling below $5.00.
TIA/USD 1-day chart
However, if TIA holders refrain from booking profits and the market does not see the inflow of tokens as a threat to the price action, Celestia price could bounce off the $5.52 or $4.90 levels to save the gains it noted in the last few days. Reclaiming the $5.52 level as support would invalidate the bearish thesis and provide TIA with the support necessary for further gains.