TIA has defied expectations following the Celestia token unlock event, which saw the release of tokens worth $890 million earlier this week.

Over the past 24 hours, TIA has surged by 4%, outperforming the broader cryptocurrency market. This analysis examines whether the current price rally is likely to sustain its momentum or face a reversal.

Celestia Defies Expectations

On Wednesday, the Celestia token unlock event saw the release of 176 million TIA tokens, valued at approximately $890 million at current price. Token unlocks of this magnitude are often seen as “sell-the-news” events. The increase in circulating supply can drive selling pressure as holders may opt to sell their newly accessible tokens to secure profits.

However, the reverse has been the case for TIA. In the past 24 hours, the coin’s price has risen by 4%, positioning it as the top gainer among the 100 largest cryptocurrencies by market capitalization.

TIA continues to enjoy a strengthening bullish bias, as evidenced by its positive funding rate. BeInCrypto previously reported that following the token unlock event on Wednesday, TIA registered its first positive funding rate since September 10, reflecting the market’s optimism. As of this writing, this fee remains positive at 0.0085%. 

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An asset’s funding rate refers to the regular fee exchanged between traders in its perpetual futures market to ensure that its futures contract price aligns with its underlying spot price. When it becomes positive, it signals a shift from bearish to bullish sentiment, indicating that traders increasingly take long positions in anticipation of rising prices.

Moreover, TIA’s moving av

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Author: Abiodun Oladokun