The price of TIA has dropped significantly in the last 24 hours. This follows the unlocking of 176 million tokens by Celestia on Wednesday. The sudden increase in supply has put pressure on the price, leading to a nearly 10% decline. Right now, TIA is facing a bearish trend, which could lead to more drops.

On Wednesday, Celestia released 176 million TIA tokens, worth about $890 million at current market prices. This influx has increased TIA’s circulating supply and created considerable downward pressure. As it stands, TIA is trading at $4.68, down 9% in just 24 hours.

Token unlocks often cause uncertainty and fear among investors. They worry about potential selling pressure from token holders. This situation is evident with TIA, even though there have been clarifications that not all unlocked tokens will be available for immediate sale.

Taran Sabharwal, the CEO of Stix trading platform, shared insights on X. He mentioned that Celestia has a 21-day unstaking period. This means anyone looking to sell their unlocked TIA tokens has probably already unstaked them. Therefore, the expected selling pressure from this token unlock is around 92.3 million TIA, which is roughly $460 million.

“This amounts to a maximum selling pressure of about $460 million. Interestingly, this is less than 50% of the total cliff unlocks. So, the sell pressure is actually half of what people expected,” Sabharwal noted.

BeInCrypto analyzed the TIA/USD one-day chart and confirmed the increase in selling pressure after the token unlock. Currently, the Relative Strength Index (RSI) of the coin is at 38.46. This downward trend indicates that selling pressure is greater than buying activity among traders.

However, TIA’s futures traders seem to have a more positive outlook. This is reflected in its funding rate. According to Coinglass data, the funding rate for TIA has turned positive for the first time since September 10. A positive funding rate suggests a shift from bearish to bullish sentiment, indicating that traders are now taking long positions, expecting prices to rise.

At present, TIA is trading at $4.68, reflecting a 9% decline over the past day. This drop has pushed the price below a support level established since July. The upper boundary at $6.83 acts as resistance, while $4.71 serves as the support level.

If the selling pressure continues, TIA’s value may slide further, possibly hitting a multi-month low of $3.72. On the flip side, if there’s a bullish reversal at the $4.71 support level, it could lead to a recovery. In that case, TIA might aim for a breakout above the $6.83 resistance. If it clears that threshold, TIA could push past $7, a level it hasn’t reached since June.