- The value of CEL continued to fall after that Bankruptcy procedure Celsius.
- The price of CEL took an unimpressive turn after the June 29 short squeeze left short sellers with losses.
Despite the recent approval of the judge overseeing Celsius’s bankruptcy proceedings, its native token, CEL, experienced a continued decline in trade value.
read Celsius’ [CEL] Price forecast 2023-2024
The approval allowed the troubled crypto lender to stop selling and converting its altcoins into popular cryptocurrencies, Bitcoin [BTC] and Ethereum [ETH]from July 1.
As of press time, CEL traded hands at $0.1543, down 4% in the past 24 hours, according to data from CoinMarketCap. CEL’s fall in value came after it experienced a temporary increase in value on June 29.
The rally was driven by a large number of bets against CEL, following a 45% drop in value in the previous month. On-chain data from Sanitation confirmed increased network activity for the already on June 29, as the number of active addresses and the number of new addresses increased by 92% and 42% respectively on that day.
Source: Sentiment
However, contrary to what short sellers expected, a short squeeze occurred as the price of CEL reached an intraday high of 45%. According to CoinMarketCap, the alt traded for as much as $0.20. At press time value, the price of the alt has since dropped 25%.
The fate of CEL as the token sale begins
A review of CEL’s performance on a daily chart revealed a bearish divergence between the price of the alt and its Moving Average Convergence Divergence (MACD) indicator.
The past week was marked by a continued decline in the value of CEL. However, the MACD line rested above the trendline. This suggested that the short-term moving average of the crypto remained higher than the long-term moving average.
This kind of move generally indicates that the asset in question is in an uptrend or about to start one.
With the price of CEL moving in the opposite direction, a bearish divergence was thrust upon the market. So there was a loss of upside momentum.
Furthermore, CEL’s Chaikin Money Flow (CMF) rested below the midline at the time of writing, yielding a negative reading of -0.24. A negative CMF reading is usually seen as an indication of dominant selling pressure in the market.
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The price of CEL was trading close to the lower band of its Bollinger Bands indicator at the time of writing. This usually indicates increased selling pressure, which may result in a further fall in the asset price. However, it also suggested that CEL’s sellers were moving closer to exhaustion and that a possible price reversal was imminent.
Source: CEL/USDT on TradingView
For this to happen, weighted investor sentiment must improve and turn positive.
