- Celsius Network price has been in a strong bullish trend.
- CEL soared by more than 2,100% from the lowest level this year.
Celsius Network price went parabolic this week as demand for the token jumped. CEL rose to a high of $2, which was the highest point since June 14th of this year. The token has jumped by more than 2,100% from its lowest level this year, giving it a market cap of over $858 million.
Why is CEL soaring?
Celsius Network is a cryptocurrency lender that declared bankruptcy this year as the prices of most coins crashed. The company used to offer cryptocurrency loans to individuals and businesses around the world. It also had investment, swap, and payment solutions.
At its peak, the company had over 1.7 million customers from around the world. It also had billions of dollars in customer deposits. Most importantly, it was one of the most valued fintech companies in the industry.
Celsius Network’s problems started earlier this year when the prices of cryptocurrencies collapsed. The challenges accelerated when Terra and its ecosystem crashed, costing investors over $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 done well in the past few weeks even after Celsius Network remains inactive and as bankruptcy negotiations continue. This price action is mostly because of online investors who are hyping the coin in social media platforms like Twitter, Reddit, and StockTwits.
In the past few years, we have seen many bankrupt assets see a strong rebound. For example, the token of Voyager Digital (VGX) has also jumped sharply even after the company went bankrupt.
Similarly, shares of companies like Revlon and Hertz went parabolic after filing to go bankrupt. This happens as traders implement a short-squeeze. The situation has been supercharged by the strong performance of other cryptocurrencies.
Celsius Network price prediction
The four-hour chart shows that the CEL price has been in a strong bullish trend in the past few months. It managed to move above the important resistance level at $1.5810, which was the highest level on July 28th.
Celsius has risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) and MACD have pointed upwards. Therefore, the coin will likely continue rising as buyers target the next key resistance point at $2.5.
