The Celsius Network price went parabolic this week as demand for the token surged. CEL reached a high of $2, which was the highest point since June 14 of this year. The token has jumped over 2,100% from its low this year, giving it a market capitalization of over $858 million.
Why is the CEL soaring?
Celsius Network is a cryptocurrency lender that filed for bankruptcy this year as prices for most coins crashed. The company offered cryptocurrency loans to individuals and businesses around the world. It also had investment, exchange and payment solutions.
At its peak, the company had over 1.7 million customers worldwide. He also had billions of dollars in customer deposits. More importantly, it was one of the most highly regarded fintech companies in the industry.
Celsius Network’s troubles began earlier this year when cryptocurrency prices crashed. The challenges accelerated when Terra and its ecosystem collapsed, costing investors more than $50 billion. Celsius then filed for bankruptcy and claimed it had $167 million in cash while owing $4.7 billion to users.
CEL price has performed well over the past few weeks, even after Celsius Network remained inactive and bankruptcy negotiations continued. This price action is mostly due to online investors promoting the coin on social media platforms like Twitter, Reddit, and StockTwits.
Over the past few years, we have seen many bankrupt assets experience a strong rebound. For example, Voyager Digital’s (VGX) token also surged strongly even after the company went bankrupt.
Likewise, shares of companies like Revlon and Hertz went parabolic after filing for bankruptcy. This happens when traders implement a short squeeze. The situation was supercharged by the strong performance of other cryptocurrencies.
Celsius Network Price Prediction
The four-hour chart shows that the price of CEL has been following a strong uptrend over the past few months. It managed to break above the important resistance level at $1.5810, which was the highest level on July 28.
Celsius rose above the 25- and 50-day moving averages while the Relative Strength Index (RSI) and MACD edged higher. Therefore, the coin is likely to continue rising as buyers target the next key resistance point at $2.5.