Skip to main content

Celsius token CEL surges 300 percent: Short squeeze like GameStop

 


The CEL is Celsius Network's native token and has almost quadrupled since June 19. This indicates very active day traders.

CEL's price rose from $0.67 on June 19 to $1.59 on June 21. This corresponds to an increase of 180 percent. In comparison, the crypto market rose by 12.37 percent over the same period.


The rally began after PlanC, an independent market analyst, bid $20 million if anyone could prove that the Celsius Network was the victim of a coordinated third-party attack, causing the crypto lending company to suspend payouts last week.

The announcement caused an uproar on Twitter , with many accounts using the hashtag #CelShortSqueeze on their profiles. In doing so, they showed that they would target investors who had bet that CEL's price would fall.


The hashtag went viral on Twitter in the United States. Between June 12th and June 18th, the term "CEL short squeeze" achieved a perfect score of 100 in terms of searches according to Google Trends.


The hashtag and catchphrase suggest that day traders have been buying CEL tokens en masse, driving the price higher.


Thus, investors with short positions had to buy back the tokens at a higher rate to "cover" their positions. This caused them massive losses.


Therefore, the so-called "short squeeze" was successful and resulted in a strong CEL rally.



The event was reminiscent of the GameStock situation in January 2021, where some Reddit users benefited by destroying short positions held by Melvin Capital and other hedge funds. That also caused hedge funds to lose billions of dollars at the time .


Insolvency risk remains

Celsius Network, which managed over $20 billion in digital assets last year , is currently at risk of bankruptcy . The reason for this is the excessively high returns (up to 18 percent) on customers' crypto deposits, which the platform can no longer support.


As of May, Celsius had just $12 billion in assets under management. That is almost half as much as in early 2022, as the website says. The company then stopped disclosing its assets under management.


CEL is the native currency within the Celsius ecosystem for interest income and debt repayment. The cryptocurrency continues to face downward pressure as it is nearly 84 percent below its April 2021 peak of $8.

CEL/USD could now retest USD 1.95 as a resistance level as shown on the Fibonacci retracement chart below.

CEL/USD weekly chart. Source: TradingView

If CEL breaks out of this level, it could test $3.11 next. On the other hand, a decline could drop the pair to $0.34, declining current support.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands
Post a Comment
Read more