- Celestia’s price action suggested that a range formation was reasonable.
- The uptick in Open Interest was not backed up by spot buying.
Celestia [TIA] buyers have been happy over the past week. The price action of the token saw gains of 20% recorded in the past five days, and the market structure had flipped bullishly as well.
At press time, the chances of a range formation were good. Though buying pressure was not yet strong enough to breach the $20.4 resistance zone, could this change in the coming days?
Defending the idea of a range
The $13.87-$20.4 region was demarcated using the purple channel to indicate a possible range formation. The range highs have not been tested a second time, and a rejection from there would solidify this idea.
But even before waiting for the range high retest, the reaction of the price from the mid-range mark (dashed white) at $16.84 could provide a hint.
The past two weeks saw this level serve as both support and resistance.
Source: TIA/USDT on TradingView
Therefore, it was likely that TIA could climb to the psychological $20 zone and falter once again.
Alongside the bullish market structure, the RSI also crept above the neutral 50 mark to indicate upward momentum was strengthening.
Yet, the OBV did not possess a firm trend. It has oscillated by a large margin in January.
If it can’t break above the mid-January highs when TIA prices reach the $20 mark, it would be a sign that prices would recede once more.
The spot buying has been weak recently
Source: Coinalyze
The Open Interest chart from Coinalyze has been in a slow uptrend since the 26th of January. In this time, TIA has rallied from $15.5 to $17.8.
Together, it showed that speculators were willing to go long, and outlined bullish sentiment. Yet, the aggregated Funding Rate has been negative.
Thus, Futures market participants remained skeptical of TIA gains in the short term.
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The idea was also supported by the spot CVD, which bounced higher on the 26th and 27th of January. However, it had once again fallen at press time.
Overall, the lack of buying pressure suggested that TIA might have a difficult time climbing past $18.5 until the OI or the spot CVD charts change course and move northward.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
