Cryptocurrency

Celsius may be market’s Achilles heel, but why then did CEL rally by 100%

As the cryptocurrency ecosystem step by step recovers from the influence of the collapse of Do Kwon’s LUNA and his UST stablecoin, the suspension of withdrawals, swaps, and transfers between accounts on Celsius because of “extreme market conditions”, despatched your entire market spiraling downwards on Monday (13 June).

As the Network ‘intensified’ its effort to renew all suspended actions, the Wall Street Journal reported that Celsius Network intends to pursue a company restructuring and attainable refinancing because it has employed restructuring attorneys from the legislation agency Akin Gump Strauss Hauer & Feld LLP to advise it on subsequent steps to resolve its monetary woes. This comes after Nexo Exchange, a number one competitor, prolonged a formal offer to amass the qualifying property of Celsius.

In gentle of those developments, throughout intra-trading hours on 14 June, the Network’s native token, CEL rallied up by over 100%. Keeping most of its good points 24 hours later, what else did we observe?

It’s scorching in right here

Posting over 100% good points on 14 June, the bulls continued to have a subject day with the CEL token on 15 June. Exchanging palms at $0.4911 per CEL token on the time of writing, a 73% uptick was posted within the final 24 hours.

At press time, buying and selling quantity registered an unimaginable 228.59% soar indicating that the final 24 hours have been marked by the extreme accumulation of CEL tokens. Still, down 93% from its all-time excessive of $8.02 seen final June, as Celsius Network contemplates restructuring in gentle of latest occasions, the dangerous days won’t be over for its CEL token.

Source: CoinMarketCap

Worthy of word is the motion of the Relative Strength Index (RSI) for the CEL token amidst the spike in worth. Interestingly, as the value went up on 14 June, the RSI tried to interrupt by way of the 50 impartial spots. The bears, nonetheless, shortly compelled a retracement on the 47 index. At press time, the RSI was pegged at 41 on a downward curve. 

A big influx of money was additionally noticed in taking positions within the final 24 hours. At 81 at press time, the Money Flow Index was deep within the overbought area. 

1655307623 70 Celsius may be markets Achilles heel but why then did

Source: TradingView

Before you burn your self…

On-chain knowledge confirmed consumers making an attempt to reap the benefits of the spike in worth. In the final 24 hours, the variety of each day energetic addresses transacting the CEL token grew by 13%. 

1655307624 564 Celsius may be markets Achilles heel but why then did

Source: Santiment

However, regardless of progress in worth and progress in energetic addresses on the community, transaction quantity remains to be down. This recommended that regardless of the expansion recorded, as what’s to turn into of Celsius Network stays unclear, loads of traders are nonetheless fairly skeptical about buying the CEL tokens.

1655307624 541 Celsius may be markets Achilles heel but why then did

Source: Santiment

A take a look at the change movement steadiness on the time press confirmed that it was pegged at damaging 49.7k. This meant {that a} decline in worth was underway. 

1655307624 472 Celsius may be markets Achilles heel but why then did

Source: Santiment

Importantly, with a volatility fee as excessive as 134% within the final 24 hours, consumers have to train warning.

1655307624 179 Celsius may be markets Achilles heel but why then did

Source: LunarCrush

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