Celsius (CEL) Price Rises 370%, Here’s Why
CEL, the native token of the Celsius Network, has recently sent the broader crypto industry into a tizzy with a staggering 370% price increase in the past week. This price rise, which is mainly attributed to the token’s recently initiated massive burn, lags behind other bullish market statistics and fuels additional market optimism about the token.
Here’s a closer look at what’s driving CEL’s recent phenomenal price rise and current price movements.
Celsius Network Burns 94% of Supply
Emerging data from the global crypto industry shows that the Celsius network burned a staggering 652.2 million CEL tokens on April 30 by transferring them to an empty address. The massive amount of tokens destroyed marked the destruction of 94% of CEL’s total supply and created a massive uptrend for the token.
After the massive burning process, the total supply decreased from 692.8 million CEL to 40.6 million CEL, which led to an increase in prices. This price rise gradually gained significant traction, resulting in a weekly gain of approximately 370% for the token.
It’s worth noting that this massive burn comes as part of the company’s bankruptcy filing.
What sets CEL’s price rise apart is that it defies current broader market trends. Despite the increasing volatility of the market, on-chain data highlighted the bullish nature of CEL, demonstrating the market’s bullish sentiment and further increasing the token’s appeal to crypto market participants.
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CEL Price Movements and On-chain Data
As of press time, the price of CEL has experienced a 40.10% increase in the last 24 hours and is currently trading at $0.7185. The token’s market cap increased by 40.10%, followed by a 14.48% increase in 24-hour trading volume.
Coinglass data showed that CEL’s open position increased by 72.01% to $13.69 million, while derivative volume increased by 26.62% to $319.09 million. This underlined the existence of a market uptrend, potentially driven by increased interest among investors and an increase in the token’s derivatives market trading activity.
Meanwhile, the RSI hovered around 80, indicating that the asset was in the overbought zone. This sets the stage for a potential price pullback or correction as it may have risen too quickly.
Technical indicators pointed to a strong buying sentiment for the token in the market and also hinted that a rally could be expected in the short term if the buying pressure continues. However, the RSI continues to cloud the token’s long-term price movements with mystery.
Also read: UK Minister Warns Against Tighter Crypto Regulations, Here’s All
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