Celestia falls back on Ethereum for data security while TIA jumps

• The project integrated OP Stack and Arbitrum Nitro to assist with data security.
• TIA reached a new ATH and its volume increased.

Modular consensus and data network Celestia [TIA] has introduced an L2 system called the “Ethereum fallback.” Celestia described the Ethereum [ETH] fallback mechanism that backs up data availability in the event of downtime on the Celestia mainnet.

2FA for the Celestia camp

According to the project, two L2s are involved development— Arbitration [ARB] And Optimism [OP]. Celestia revealed that her choice of Optimism’s OP Stack was because the blockchain can back up rollup blocks and messages to Ethereum.

In the case of Arbitrum Nitro, Celestia wants it to use its advanced call data compression. This is to ensure that data is kept on-chain if primary data availability fails. Regarding both concepts, Celestia noted that:

“These two features work together to ensure that the Ethereum fallback mechanism works correctly, ensuring the rollup continues to function even during periods of downtime on Celestia.”

As a result of this disclosure, AMBCrypto proceeded to review Celestia’s development activities. Development in the press activity fell to 1.06. This metric tracks work done in a project’s public GitHub repository.

Source: Santiment

So the decrease means that there has been a lot of activity related to polishing the network.

The TIA price reached a new All-Time High (ATH) of $7.35. In a previous article, AMBCrypto discussed TIA is one of the new projects with a good price promotion.

TIA’s uptrend resumes

But lately the token has been at the mercy of a 30% limpness. At the time of writing, the TIA/USD H4 chart has regained its bullish market structure. However, it appears that the upturn was starting to overheat.

If so, price action could return from a northerly direction. One of the reasons for this assumption is the Relative Strength Index (RSI). At the time of writing, the RSI was 71.75, which is considered overbought.

Like the RSI, the Bollinger Bands (BB) also reinforced the idea that TIA was overbought. This was because the upper band of the BB touched the TIA at $7.30. Had the price reached the lower band, TIA would have been labeled as oversold.

Source: TradingView

Therefore, there is a chance that TIA will decrease. Also, if the 26-day EMA (orange) becomes equal to the 12-day EMA (blue), the token value can recover. However, there appears to be support around $6.32. Should the price reverse, it may not fall below $6.50 in the near term.

Two other stats to watch when analyze Celestia are social dominance and volume.

Realistic or not, here it is TIA’s market cap in ETH terms

At the time of writing, TIA’s volume was 188.40 million – down slightly from its peak of 221.80 million. This means that a lot of TIA tokens have been exchanging hands recently.

So it was not surprising that social dominance rose to 1.878%, indicating an increase in discussion around the project.

Source: Santiment