Celestia, the Modular Data Network, Sees Three Consecutive Days of Growth

The Celestia token has experienced a notable rise, increasing by 3.21% to $6.28. This marks a 60% uptick from its lowest level this year and brings its market cap to $1.3 billion. Despite this growth, the token remains 72% below its all-time high of $21.10.

Recent Developments and Fundraising Efforts

Celestia has been making significant headlines recently. In September, the network raised $100 million from investors including Bain Capital, Robot Ventures, and Placeholder. This funding boost brings Celestia’s total funding to $155 million, positioning it as one of the best-funded entities within the cryptocurrency industry.

Technical Updates and Network Scaling

This week, Celestia Labs announced the results of the Mammoth Mini testnet. This upgrade will implement 88 MB blocks with an average of 27 MB/s of permissionless data throughput. This represents a substantial step towards the network’s goal of handling 1 GB blocks and beyond, as it currently manages 2 MB blocks every 12 seconds.

The Mammoth Mini testnet is set to transition to a public testnet, followed by a mainnet launch in 2025, pending community approval. Historically, cryptocurrencies tend to perform well ahead of major updates.

This latest upgrade follows the Shwap upgrade, which was implemented a few months ago. Shwap enhances data sampling speed by 12 times and reduces storage requirements by approximately 16.5 times.

Risks and Upcoming Token Unlock

One potential risk for Celestia’s price is the upcoming large token unlock scheduled for October 31. The network plans to unlock 175.74 million tokens, worth $175 million, representing 16.3% of the total supply. Token unlocks can lead to dilution, impacting existing holders, especially those who earn through staking.

Technical Analysis and Future Projections

The daily chart indicates that the TIA token is trading at $6, aligning with the upper side of the descending trendline, which connects the highest swings since June this year. Celestia has moved above the 100-day and 50-day Exponential Moving Averages. Additionally, the Relative Strength Index has risen above the neutral point at 50, and the Percentage Price Oscillator has crossed the zero line.

Moreover, Celestia has formed an inverse head and shoulders pattern. A break above the trendline could lead to further gains, potentially reaching the psychological level of $10.

“Investors should monitor these developments closely, especially with the upcoming token unlock, which could significantly impact the token’s market dynamics.”

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