TIA Price Surges 32% as Celestia Announces $100M Funding

Why is TIA Price Going Up?

Celestia’s TIA token price crossed $6.20 mark on Sept 24, up 32% in the last 24 hours as markets reacted to the layer-1 network’s successful $100 million funding round, led by Bain Capital Crypto.  How far can TIA price go?

Celestia Announces Fresh $100M Funding Round

On Sept 23, The Celestia Foundation announced that it has secured $100 million in a new funding round led by Bain Capital Crypto. This fresh capital injection raises the total funds for the modular layer-1 blockchain project to $155 million.

Since launching its Mainnet Beta in October 2023, Celestia (TIA) has been pushing the boundaries of blockchain technology with its innovative modular architecture.

Unlike traditional monolithic Layer 1 blockchains, Celestia enables developers to build highly scalable, high-throughput applications across multiple virtual machines or rollup frameworks.

Celestia’s latest technical roadmap outlines its ambition to scale block throughput to 1 gigabyte. If achieved, this would place Celestia far beyond the capabilities of legacy systems like Visa, which handles around 24,000 transactions per second (TPS). The platform is on track to deliver throughput comparable to running multiple Visa networks simultaneously.

“We’ve transitioned from the blockchain dial-up era to broadband, and now we aim to take it to the fiber optic level—all while maintaining verifiability and low latency.”

Celestia Co-founder Mustafa Al-Bassam.

Celestia’s ongoing innovation in the data availability layer continues to attract attention from both developers and investors as it targets groundbreaking improvements in blockchain scalability and performance.

TIA Price Surges 32% on Celestia’s $100M Funding Round

The announcement of Celestia’s $100 million funding round has had an immediate impact on its native token, TIA, which surged 32% in 24 hours.

Between September 23 and 24, TIA’s price climbed from $5.25 to $6.90, reflecting heightened investor confidence. The surge can be attributed to several factors tied to the announcement.

At the time of writing on Tuesday, Sept 24, Celestia price has retraced towards the $6.19 level. However, bull traders could still shoot for more gains in the days ahead.

Firstly, capital injections of this magnitude often signal strong backing from reputable institutions, reassuring the market of a project’s long-term viability.

In this case, Bain Capital Crypto and other prominent investors endorsing Celestia’s roadmap for scaling blockchain throughput was a major validation, prompting swift bullish sentiment around TIA.

Secondly, such investments often create a halo effect in the crypto markets, where strategic funding rounds are viewed as catalysts for growth.

Investors anticipate that with more capital, Celestia will accelerate its development pipeline, directly enhancing the utility and demand for its native token. This speculative optimism drives short-term price gains as market participants seek to front-run the perceived value increase.

Overall, the rapid TIA price appreciation reflects both confidence in Celestia’s technological advancements and broader market dynamics that reward strong investment signals. However, whether these gains are sustained depends on the project’s execution in scaling throughput as promised.

TIA Price Forecast: More Gains Ahead if $6 Support Holds

Celestia’s TIA token crossed the $6.20 mark on September 24, experiencing a 32% surge within 24 hours following the announcement of a successful $100 million funding round, led by Bain Capital Crypto.

This surge reflects the market’s reaction to the bullish sentiment surrounding Celestia’s layer-1 scalability potential. How far can TIA price go?

The Relative Strength Index (RSI), which measures the speed and change of price movements, stands at 61.83, indicating bullish momentum but nearing overbought territory.

The RSI suggests that the rally could continue but also signals potential exhaustion if the indicator surpasses 70.

Simultaneously, the Bollinger Bands, a volatility indicator, show that TIA’s price is currently above the upper band at $6.61, implying short-term overextension. When prices exceed the upper band, a pullback towards the middle band (currently near $4.90) often occurs. However, if TIA can maintain momentum above $6.20, a push toward $7.50 could be the next major target.

In conclusion, while TIA remains bullish in the short term, key levels at $6.20 support and $7.50 resistance will determine the next move. A dip below $5.50 could signal consolidation.