As the broader crypto market recovered, Celestia [TIA] bounced back from a $0.52 slip and reached an 11-month high of $0.71.
However, at press time, Celestia was trading around $0.68, up 28% on the daily charts. Over the same window, the altcoin’s trading volume surged 160% to $162 million, indicating higher market participation.
Additionally, the daily turnover rose from $32 million to $63 million, suggesting a higher buying pressure.
Celestia rallies as bears face liquidation
After Celestia pumped, traders who had positioned themselves anticipating further price slip were flushed out of the market.
According to CoinGlass data, the altcoin saw $1.4 million worth of shorts liquidated. Usually, when shorts are liquidated, it creates new buying pressure, pushing the price higher and triggering more short liquidations.
In addition to buying pressure arising from short exits, more funds were allocated to open new positions. Notably, the altcoin’s Open Interest (OI) surged 45% to $142 million as of writing.
The OI surge was backed by a 110% jump in volume, reflecting high participation and capital inflows.
Investors on Binance increased capital deployment significantly. Over the past 24 hours, the Perps Buy Volume rose to 90 million compared to 89 million in Sell Volume.
A higher buy volume indicated that more buy orders were executed during the period.
Could profit takers threaten the rally?
While the pressure on the derivatives side turned to the upside, sellers on the spot became aggressive. For example, on the 16th of October, Celestia’s Spot Netlow climbed to a record high of $2.2 million.
Such an elevated Netflow implied that more tokens were deposited into exchanges than withdrawn. Historically, higher exchange inflows have increased selling pressure, weakening market structure.
Can the momentum hold?
Celestia’s upside momentum has strengthened significantly despite the recent profit realization.
A look at the momentum indicators confirms this view. For instance, at the time of writing, the altcoin’s positive index of ADX rose to 31 while the negative index fell to 7.
Rising +DI while the -DI declines indicated a strong upward momentum. Likewise, the Aroon line also validates this, with Aroon Up climbing to 100%.
These indicators reflect sustained bullish pressure and signal a likely continuation of the trend. Thus, if these factors remain constant, Celestia will reclaim $0.70 and target $0.80, where the trend collapsed in November.
However, if bulls fail to hold off profit-takers, the altcoin could retest $0.50.
Final summary
- Celestia surged 28%, cleared key resistance, and reached an 11-month high of $0.71 before slightly retracing to $0.68.
- TIA rallied, driven by strong speculative demand, but profit-taking could threaten these gains.