CEL Rallies To $2 As Bankruptcy Proceedings Continue, But Rally May Just Be Starting
August 09 2022 - 1:00PM
NEWSBTC
Celsius (CEL) has been rallying in recent times. The native token
of the now bankrupt Celsius Network had taken a nosedive when the
company had first filed for bankruptcy, but it seems the time is
changing with the recent recovery. As Celsius continues with its
proceedings, the price of CEL has shot up over the last week,
reaching as high as $2. What Is Behind CEL Recovery? The recovery
in CEL’s price has obviously come as a surprise to the market. The
altcoin had struggled tremendously before finding its footing once
more. But the rally that followed has exceeded expectations on all
fronts. After struggling below $1 for the better part of last
month, the digital asset has now found some much-needed reprieve.
Related Reading: What Is FLOW Blockchain And Why Is The Price Up
100% In The Last 24 Hours? CEL’s price soared about 50% in the last
7 days alone, causing it to touch as high as $2 in the early hours
of Tuesday. It has since retraced back down to around $1.80, but
the bull trend continues to hold and has triggered speculations
around what was causing the increase in price. However, the reason
behind the CEL run-up is a simple one of supply and demand. Since
Celsius had begun bankruptcy proceedings, it has locked up a large
amount of crypto on its platform. Now, the majority of that crypto
was being held on the exchange to earn CEL rewards, which is how
new supply was introduced into the market. Since all of the cryptos
are now frozen, CEL inclusive, and there is no new supply being
pumped into the market, it has led to a supply squeeze. CEL price
at $1.85 | Source: CELUSD on TradingView.com Simply put, there is
now more demand for CEL than there is supply. Celsius is not
allowed to put new tokens into the market, which means that the
only available tokens are the supply currently in the market. Short
sellers are also being forced to close their positions, else, they
lose a lot of money in the short squeeze, leaving only the
long-term traders and CEL bulls to dominate the market. Related
Reading: Number Of Crypto ATMs Installed Worldwide Reaches New
Milestone This singular reason alone has rewritten a bullish part
for the digital asset. Bankruptcy proceedings are known to take
years, an example is the Mt Gox case, and with most liquid CEL
supply being frozen on the platform for years, it is expected that
this will be a prolonged short squeeze. However, not a lot of
optimistic price predictions are now emerging for the altcoin due
to this reason. Price Estimates from Coinmarketcap show that
investors expect the digital asset to hit as low as $0.77 in the
month of September. Featured image from The Coin Republic, chart
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