Amidst a sea of red in today’s cryptocurrency market, Celsius (CEL) stands out, with its price rallying by 37% in the last 24 hours. As of 12:06 UTC, Celsius was trading at $0.9546, defying market expectations and catching the attention of crypto investors worldwide. However, the surprising surge in CEL’s price raises questions about the underlying factors driving this remarkable rally.
Celsius Token Rising Despite Lender’s Bankruptcy
Celsius, the lending platform behind the Celsius (CEL) token, filed for bankruptcy over a year ago, leaving many investors skeptical about the token’s future. With no apparent underlying value to the CEL token, its recent surge has puzzled analysts and investors. However, a closer examination reveals that the rising price is fueled by the ongoing token burn initiated by the Celsius platform.
Celsius Burns 94% Of Tokens At Once
Last month, Celsius executed a monumental token burn, eliminating 94% of its token supply in a single transaction as part of the bankruptcy process. This strategic move effectively reduced the circulating supply of CEL tokens controlled by Celsius, leaving a significantly diminished pool of tokens in the hands of outside investors. Its reduced supply has triggered a surge in price due to increased scarcity.
the $cel thesis is simple:
– @CelsiusNetwork goes bankrupt; investors lose money
– Bankruptcy proceedings end with Celsius burning 95% of token supply, but they can’t burn the remaining 5% already distributed among 30k+ holders
– New opportunity opens for investors to capture…
— Aristarchus (@aristarchus0) May 6, 2024
Celsius Now Behaving Like A Meme Coin
With the majority of tokens now held by external investors, the CEL token has begun to exhibit signs of upside volatility, catching the attention of traders and speculators alike. While some analysts remain skeptical about the sustainability of this rally, others see the potential for further upside given the token’s newfound status akin to a meme coin.
Indeed, with the diminished token supply and growing community hype, Celsius is poised to operate in a manner reminiscent of meme coins that have done quite well recently. Moreover, Celsius’s listing on top exchanges such as Gate.io and Kucoin further amplifies its visibility and accessibility to investors, potentially paving the way for new highs soon.
Celsius Points To The Unpredictable Nature Of Cryptocurrencies
While the unexpected rally in Celsius has caught many off-guard, it points to the unpredictable nature of the cryptocurrency market and the influence of unique factors driving price movements. As Celsius transitions into a new phase characterized by community-driven hype and reduced token supply, investors are closely monitoring developments for signals of further price appreciation.
Whether Celsius can sustain its upward trajectory remains to be seen, but its remarkable resilience amidst adversity signals a new chapter in its journey toward broader recognition and growth.
In the section below, we make a Celsius price prediction to determine how it could trade for the remainder of the day and in the next 24 hours.
Celsius Consolidating After Rally Earlier In The Day
Celsius has been in a solid bullish rally for the last 24 hours, rising from lows of $0.50 to highs of $0.98. However, in the last few hours, Celsius seems to have hit strong resistance at $0.9752 and is currently consolidating between $0.9752 resistance and $0.9076 support. However, with volumes high, Celsius could soon break the $0.9752 resistance and potentially test higher prices in the day. If this happens, Celsius could easily hit prices above $1 in the coming hours or within 24 hours.
If bulls fail to push Celsius through the $0.9752 resistance, then two scenarios could play out today. The first is a possible continuation of the consolidation pattern that started a few hours ago. On the other hand, if bears take control and push Celsius through the $0.9076 support, then Celsius could easily crash to as low as $0.70 in a matter of hours.
Can Celsius Push Through $1?
With hype building up on Celsius driven by the token burn, Celsius could quickly push through $1 today. Celsius could also see excitement build up around it because no one is investing in it for the fundamentals anymore. At this point, it is about the hype, and if meme coins have proven anything, they have the potential to rally harder than cryptocurrencies with actual use cases.