fbpx
5.5 C
London
Sunday, December 4, 2022

Celsius Network Is In Bankruptcy, Yet CEL Price Is 4000% Up

The CEL price is rising due to takeover speculation and a short squeeze, but is there sufficient momentum to see further gains?

Most of the liabilities on the balance sheet of cryptocurrency lending platform Celsius Network, worth about $1.2 billion, are owing to its users. The company has also requested bankruptcy proceedings, so its future is dim.

- Advertisement -

Nevertheless, the value of Celsius Network’s native usage token CEL has increased by over 4,100% in the previous two months, hitting about $3.93 on August 13 asc opposed to its low of $0.093 in mid-June.

Celsius Is On The Verge Of A Takeover: 

Early in August, when its relative power index (RSI) exceeded the threshold of 70, the price surge turned CEL into an inflatedly valued token from a technical standpoint.

The positive strength of CEL appears to be driven by takeover rumors. Notably, Reuters on August 10 cited an unnamed source as saying that Ripple intends to buy Celsius Network’s assets. After the news broke, the price of CEL more than doubled.

- Advertisement -

In July, rumors of Goldman Sachs wanting to buy Celsius Network for $2 billion also appeared. The price of CEL at that time was as low as $0.39.

The massive upward movement of the CEL during the past two months also looks to be the work of a vast army of retail traders.

Some traders have coordinated a short squeeze to reduce the potential for CEL’s price to fall. A short squeeze can happen when the price of an asset rapidly increases, requiring short sellers to repurchase the asset at a higher price to cover their bets.

On August 13, FTX had over 5.1 million CEL tokens in circulation or 90% of the entire amount across all exchanges. In contrast to the month-high of 2.96 million CEL on August 11, the number of open short-term securities on the market was around 2.66 million CEL at the time.

 

- Advertisement -

Follow Us

16,985FansLike
4,865FollowersFollow
1,643FollowersFollow

Latest news