Cryptocurrency lender, Celsius recently suspended withdrawals through its platform, causing panic among the investors. However, the native token CEL prices have registered a massive 130% increase in the last 24 hours.
CEL 24-hour trading Vol Jumps by 406%
The Celsius token fell more than 50% to hit the $0.20 price level on June 13. Since then, the token has gained momentum. Cell prices have increased by more than 375% in the past 7 days. This is the highest recorded gain among all the top 100 cryptos in the past week. CEL is trading at press time at an average price of $1.51. 24-hour trading volume is up more than 400% to $66.7 million
Meanwhile, according to experts, this sudden price jump is being supported by the short squeeze setup. About 87% of the CEL token supply is reportedly locked to its own network. While the withdrawals are still frozen, the Celsius token is strongly shorted to the FTX platform.
Short traders borrowed approximately 18 million CEL tokens on FTX exchanges and sold them through various platforms. This leads to a drop in CEL price to $0.20. The traders placed a short order in FTX to buy about 37 million tokens at a price of just $0.01. This bets that the Celsius network will eventually fail.
As of June 20, there are more than 11.29 million CEL tokens available on the exchange wallet. Meanwhile, Celsius has a stock of more than 695 million, of which about 320 million are tokens in the treasury.
Celsius aims for liquidity recovery
The Celsius Network stated in a recent press release that its goal remains to stabilize our liquidity and operations. However, this process will take some time. Meanwhile, the cryptocurrency lender has come forward to repay $10 million worth of DAI stablecoin to Compound Finance.
According to the Etherscan, Celsius accumulated about 166 COMP tokens and then paid back 10,030,653 DAI tokens to the Compound. However, this step comes in a series of trades. Previously, the network paid back more than 53.6 million DAI tokens to its vault using the Oasis protocol.
Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he plays video games, watches a thriller or participates in outdoor sports. Reach me at [email protected]
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