Analyst Drives Investors’ Attention to Ethereum Altcoin That Could Follow Solana (SOL) and Provide 100x Gains

Celestia

  • Chris Burniske has drawn parallels between the recent Celestia (TIA) movement and the meteoric rise of Solana (SOL) back in 2020.
  • Burniske highlights the importance of understanding and tolerating downside swings in volatile assets like TIA. 

In a recent tweet, Venture capitalist Chris Burniske, a former crypto analyst at ARK Invest and current partner at Placeholder, has drawn parallels between the recent Celestia (TIA) movement and the meteoric rise of Solana (SOL) back in 2020. Burniske has highlighted similarities between the two projects, particularly regarding their price action following significant corrections.

 

Burniske emphasizes that investors disappointed by TIA’s recent correction may find solace in studying Solana’s price chart from 2020. Despite experiencing a massive dip, SOL later rallied an astonishing 10,000% the following year. Burniske cautions against dismissing TIA’s potential based solely on short-term price movements, urging investors to consider the broader trajectory of emerging tokens in the crypto market.

Handling Volatility: A Lesson from Solana’s Journey

Addressing concerns about volatility, Burniske highlights the importance of understanding and tolerating downside swings in volatile assets like TIA. He asserts that those who cannot stomach short-term fluctuations do not fully appreciate the potential for significant gains in the long run. Drawing a comparison with SOL’s rollercoaster ride, Burniske suggests that enduring volatility is often a prerequisite for reaping substantial rewards in the crypto space.

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One notable aspect of Celestia’s upcoming trajectory is a significant token unlock scheduled for October 31 of this year. This event will see 17.57% of the total TIA supply entering the open market, potentially affecting supply-demand dynamics. Burniske points out similar unlock events have occurred in other successful projects, including Solana. Despite initial concerns, such events have sometimes preceded dramatic price surges, indicating that market sentiment and broader adoption trends are pivotal in determining the outcome.

Celestia (TIA) has seen a surge in trading activity. Its price is currently at $10.40, marking a notable 6.36% decrease over the last 24 hours. Recent trends indicate a negative trajectory for TIA, with a significant loss of -32.64% over the past 30 days and a staggering -48.69% decrease over the last three months. Additionally, the coin has seen a decline of 50.22% from its all-time high. 

Technical Analysis Indicates Potential Rally

Despite the recent downward trend, technical analysis suggests a potential bullish reversal for Celestia. The coin has been trading within a descending channel pattern since early February, characterized by lower highs and lower lows. However, after bouncing above the $8.40 support level, TIA could be poised for a significant rally.

The Relative Strength Index (RSI) is nearing the oversold threshold, indicating a possible upcoming pullback in Celestia’s price. However, this presents an opportunity for bulls to take charge and initiate a bullish move, contingent upon positive market sentiment or a significant uptick in Bitcoin’s price.

Conversely, continued profit booking could exert downward pressure on Celestia’s price, potentially causing a retreat towards the $8.40 support level. A breach below this critical support level could trigger further selling pressure, leading to a test of the support zone below. If bears manage to drive the price below $7.56, it would invalidate the bullish thesis, signaling a continuation of the downward trend.

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