• The Celestia upgrade Matcha will enable higher scalability and reduce inflation by half.
• Adam and Eve pattern targets the $3.20 on the chart, but the price must close above $2.25.
• Futures open interest surges 91.9% with great trader interest and potential breakout.

Celestia ecosystem upgrade is accompanied by technical signals demonstrating that the Celestia (TIA) token is gaining momentum. The rally has the potential to push the price as high as $3.20, nearly double its current price. However, the current value of TIA is $1.76, which is above key support levels after recently rising from $1.54.

A New Upgrade

The project has recently introduced its v6 upgrade, referred to as Matcha, on the Arabica testnet. Developers claim Matcha is the greatest update to date for the Celestia modular blockchain. It adds the capability to scale to 128MB blocks. Also, it boosts throughput significantly and reduces inflation by half.

The decreased rates of inflation are considered a supply-side shock that could stimulate the long-term value of TIA. Simultaneously, increased block capacity will place Celestia in a better competitive position against modular chains. This is due to the ability to roll up faster and at reduced cost.

Recognized Bullish Pattern

According to Ali, a popular market analyst, a pattern of an Adam and Eve reversal was visible on the daily chart of TIA. This comprises a sharp V-shaped recovery blended with a broader, rounded bottom. This pattern is usually followed by major upside moves when it is confirmed.

Ali observed that the formation has a breakout target of $3.20. His analysis indicates that the token is currently at the neckline of this structure (the $2.25 price level). A strong close above that point would confirm the pattern and open it up to upper levels.

Source: X

The Current Stage of Celestia is Critical

On the four-hour chart, the token is settling near VWAP levels of $1.78 to $1.79. These levels have served as checkpoints where buyers and sellers are well-matched.

Support and resistance zones are evident at Fibonacci retracement levels from the latest $1.54 low to the $1.94 swing high. The 0.5 Fib level at $1.74 is considered support, and the 0.236 Fib at $1.84 serves as the immediate resistance. Any break higher than $1.84 can lead to a surge to $2.25. This would coincide with the neckline identified by Ali. On the other hand, the 0.618 Fib would invalidate the bullish case, causing a drop towards $1.69.

Source: TradingView

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Derivatives Strengthen Bullishness

As shown by data from CoinGlass, TIA futures volume has shot up by 91.9%, hitting a peak of $607 million in the past 24 hours. Open interest also increased 10.4% to $231.7 million.

The increase in volume and the open interest reflect that traders are putting more capital into TIA positions. Such a mix usually indicates conviction and can boost volatility once the price leaves its consolidation range.

Source: Coinglass

Breakout Target and Risks

The bullish setup takes center stage in the Adam and Eve setup, where the expected target is at $3.20. Confirmation above $2.25 would trigger additional buying and increase bullish conviction.

Nevertheless, there are risks that cannot be overlooked. Weaknesses in the broader crypto market may also hamper any price progression by Celestia and prevent it from aligning with the breakout trend.

Also Read | Celestia (TIA) Price Prediction 2025: Can It Break Resistance and Soar to $5.50?