Can Celestia Price Hold $5 Line Amid Today's Massive Token Unlock?

The modular blockchain network Celestia is set to release 176 million TIA via token unlock today, valued at around $900 million.

Celestia (TIA) price attempts to hold the crucial $5 support amid a massive token unlock today. As the broader crypto market recovers from recent losses, Celestia price is up over 6% in the past 24 hours. However, the key support level is now being tested as the unlock begins.

Celestia Price to Drop Below $5 Despite Massive Token Unlock?

Modular blockchain network Celestia is set to release 176 million TIA via a token unlock today, valued at around $900 million. Typically, such unlocks add significant sell pressure to an asset, suggesting that the Celestia price could drive a prolonged correction.

But a closer look at the Celestia tokenomics reveals why the actual impact of the selling pressure could be less severe than anticipated.

Out of the 176 million TIA, approximately 92 million are not staked, leaving them potentially available for sale. However, the remaining tokens are still locked in staking, reducing immediate sell pressure to around $469 million.

Moreover, the Celestia Staking data reveals that 739 million tokens are locked at a 10.65% annual percentage rate (APR). This strong incentive for holders indicates the investors may continue to stake their tokens rather than liquidate.

With the crypto market today, we have seen a gradual shift towards a bullish outlook in market sentiment, with short positions unwinding as indicated by declining funding rates.

Therefore, the upcoming token unlock could trigger initial volatility, but the staked token has significantly reduced the selling pressure, potentially preventing a drop below $5.

TIA Chart Analysis Signals Major Support Amid Token Unlock

As Celestia price attempts to hold the crucial $4.5 to $5 support zone, technical analysis from market analyst trader_sam highlights this bottom as the last line of defense before bearish momentum accelerates.

A recent tweet from the analyst outlines the key support and resistance levels for TIA price, as follows:

“$CELT. celestia token unlock today. be prepared for some initial wickery, but overall, i think we’re good here. massive support from $4.5 – $5. use fibs for targets, and be prepared for a wick to $12 if we go.”

TIA price is currently attempting to rally from the bottom support, aiming to build bullish momentum and potentially rise towards the overhead resistance at $7.5.

Fib extensions from the recent swing high and low suggest potential upside targets at $10.5 and $12.5, respectively, if buying pressure can drive a strong breakout.

On the other hand, a failure to hold the crucial support zone could see Celestia price drop towards the next lower support level around $3.5 to $4.

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