- Celestia’s price action suggested that a range formation was reasonable.
- The revival of Open Interest was not supported by spot buying.
Celestia [TIA] buyers were satisfied last week. The token’s price action fueled a 20% gain in the past five days, and the market structure had also turned bullish.
At the time of writing, the chances of a range formation were good. While buying pressure has not yet been strong enough to break 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 delineated using the purple channel to indicate possible range formation. The range heights have not been tested a second time, and a rejection from there would reinforce this idea.
But even before waiting for the retest at the upper ranges, the reaction of the price from the mid-range (white dotted) at $16.84 could provide a hint.
Over the past two weeks, this level has served 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 again.
In addition to the bullish market structure, the RSI also crept above the neutral 50, indicating that upward momentum was strengthening.
Yet the OBV had no fixed trend. In January it fluctuated by a wide margin.
If it can’t get above the mid-January highs when TIA prices hit the $20 mark, it would be a sign that prices would drop again.
Spot buying has been weak lately
Source: Coinalyse
Coinalyze’s Open Interest chart has been in a slow uptrend since January 26. During this period, TIA has increased from $15.5 to $17.8.
Together, it showed that speculators were willing to go long, and painted a bullish sentiment. Yet the total financing interest rate has been negative.
Thus, futures market participants remained skeptical about TIA’s short-term gains.
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The idea was also supported by the spot CVD, which bounced higher on January 26 and 27. However, at the time of writing it had fallen again.
Overall, the lack of buying pressure suggested that TIA could struggle to rise past $18.5 until the OI or spot CVD charts reverse course and move north.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.