Cryptocurrency

Celsius token among top ten 24 hour gainers, up 13%

Zegex

Celsius (CEL) entered the list of top 10 gainers in the last 24 hours after registering the eighth highest gain of 13.41%.

celsius development

Since forming a local bottom at $0.86 on August 27, CEL has made a series of new lows on the daily chart.

Celsius daily chart
sauce: CELUSD on TradingView.com

After the CEL price peaked at $8.05 on June 4th, 2021, the token trended downwards, bottoming out at $0.08 on June 13th. Since then, the CEL has risen to $4.62 on August 15th. However, given the uncertainty of the company’s situation, it’s unclear what triggered this surge.

On June 13, the company announced a suspension of withdrawals due to “extreme market conditions”. A few weeks before the announcement, rumors circulated that the company was bankrupt. Some Celsius users reported difficulties with withdrawing funds, fueling speculation.

Since then, a number of allegations have emerged centered around poor and even fraudulent management of user funds. This included high-risk, high-leverage trading that was undone as the Terra ecosystem imploded.

After paying off several DeFi loans, Celsius filed for Chapter 11 bankruptcy on July 13. Court filings and whistleblower statements have revealed the internal workings of the company, including CEL’s price-fixing allegations.

The last communication from the company’s official Twitter was September 1stThe post cites progress on “streamlining” the claims process in the coming weeks and requesting the court to redact personally identifiable information from “selected materials.”

What is behind the movement?

The lack of positive fundamental developments suggests that speculative forces are behind CEL’s recent price surge.

twitter account @CELCAT official I posted that the hashtag #CelShortSqueeze is trending right now. However, some argue that this is a manipulated effort rather than an organic interest.

A short squeeze alone usually does not lead to sustained price gains, as speculation, rather than underlying fundamentals, drive the rise.

Another โ€œdead tokenโ€, Terra Classic (LUNC) recently posted a 280% gain over the last 30 days. However, this is due to efforts to revive tokens through new features such as token burning and high APY staking.

At this time, the future of CEL is unknown.

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