Celsius may be market’s Achilles heel, but why then did CEL rally by 100%
As the cryptocurrency ecosystem gradually recovers from the impact of the collapse of Do Kwon’s LUNA and his UST stablecoin, the suspension of withdrawals, swaps, and transfers between accounts on Celsius as a result of “extreme market conditions”, sent the entire market spiraling downwards on Monday (13 June).
As the Network ‘intensified’ its effort to resume all suspended activities, the Wall Street Journal reported that Celsius Network intends to pursue a corporate restructuring and possible refinancing as it has hired restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP to advise it on next steps to solve its financial woes. This comes after Nexo Exchange, a leading competitor, extended a formal offer to acquire the qualifying assets of Celsius.
In light of these developments, during intra-trading hours on 14 June, the Network’s native token, CEL rallied up by over 100%. Keeping most of its gains 24 hours later, what else did we observe?
Posting over 100% gains on 14 June, the bulls continued to have a field day with the CEL token on 15 June. Exchanging hands at $0.4911 per CEL token at the time of writing, a 73% uptick was posted in the last 24 hours.
At press time, trading volume registered an incredible 228.59% jump indicating that the last 24 hours have been marked by the severe accumulation of CEL tokens. Still, down 93% from its all-time high of $8.02 seen last June, as Celsius Network contemplates restructuring in light of recent events, the bad days might not be over for its CEL token.
Source: CoinMarketCap
Worthy of note is the movement of the Relative Strength Index (RSI) for the CEL token amidst the spike in price. Interestingly, as the price went up on 14 June, the RSI attempted to
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