{"id":484116,"date":"2022-08-13T13:47:05","date_gmt":"2022-08-13T10:47:05","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/"},"modified":"2022-08-13T13:47:05","modified_gmt":"2022-08-13T10:47:05","slug":"celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/","title":{"rendered":"# Celsius Network is bankrupt,\u00a0so why is CEL price up 4,000% in two months?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2535d5034d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2535d5034d0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/#%E2%80%9D_Celsius_Network_is_bankrupt_so_why_is_CEL_price_up_4000_in_two_months_%E2%80%9C\" >&#8221; Celsius Network is bankrupt,\u00a0so why is CEL price up 4,000% in two months? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/#Takeover_rumors_behind_CEL_explosion\" >Takeover rumors behind CEL explosion?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/#CEL_price_short_squeeze\" >CEL price short squeeze<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-network-is-bankrupt-so-why-is-cel-price-up-4000-in-two-months\/#Whats_next_for_Celsius_toke\" >What&#8217;s next for Celsius toke?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Celsius_Network_is_bankrupt_so_why_is_CEL_price_up_4000_in_two_months_%E2%80%9C\"><\/span>&#8221; Celsius Network is bankrupt,\u00a0so why is CEL price up 4,000% in two months? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>Crypto lending platform Celsius Network has an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $1.2 billion gap in its balance sheet, with most liabilities owed to its users. In addition, the firm has filed for bankruptcy protection, so its future looks bleak.<\/p>\n<p>Still, Celsius Network&#8217;s native utility token CEL has soared in valuation by over 4,100% in the last two months, reaching around $3.93 on Aug. 13 compared to its mid-June bottom of $0.093. <\/p>\n<p>In comparison, top coins Bitcoin (BTC) and Ether (ETH) rallied 40% and 130% in the same period.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/78b6cbc4-bdc9-4270-8c95-88a3eabfc792.png\"><figcaption style=\"text-align: center;\"><em>CEL\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Takeover_rumors_behind_CEL_explosion\"><\/span>Takeover rumors behind CEL explosion?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Technically, the price rally made CEL an excessively valued token in early August when its relative strength index (RSI) crossed above the 70 threshold.<\/p>\n<p>Takeover rumors appear to be behind CEL&#8217;s upside strength. Notably, Ripple\u00a0wants to purchase Celsius Network&#8217;s assets, according to an anonymous source <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/finance\/exclusive-ripple-labs-interested-bankrupt-crypto-lender-celsius-assets-2022-08-10\/\">cited by Reuters<\/a>\u00a0on Aug. 10.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Reuters reported that Ripple is interested in Celsius assets but there&#8217;s no confirmation yet from either companies. Celsius has halted withdrawals from the platform since June and has filed for Chapter 11 bankruptcy which will enable them gradually payback what they owe.<\/p>\n<p>\u2014 Tajo Crypto (@TajoCrypto) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TajoCrypto\/status\/1557395973827084288?ref_src=twsrc%5Etfw\">August 10, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>CEL&#8217;s price more than doubled after the piece of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> hit the wire.<\/p>\n<p>In July, rumors also surfaced about Goldman Sachs&#8217; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.business2community.com\/crypto-news\/goldman-sachs-leading-efforts-to-buy-up-celsius-distressed-assets-02511143\">intention to acquire<\/a> Celsius Network for $2 billion. CEL was changing hands for as low as $0.39 around that time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"CEL_price_short_squeeze\"><\/span>CEL price short squeeze<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An army of retail traders also appears to be behind the CEL&#8217;s giant upside push in the last two months.<\/p>\n<p>Some traders have organized a short squeeze\u00a0to limit CEL&#8217;s downside prospects. A short squeeze is when an asset&#8217;s price rises suddenly, forcing short sellers to buy back the asset at a higher price to close their positions.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin &amp; Celsius Update<\/p>\n<p>BTC is very choppy so my focus is on altcoins &amp; CEL. I&#8217;d like btc to hold 22k for bullish bias. Cel wants breakout again, Iam looking to buy more above 2.6 with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CELShortSqueeze?src=hash&amp;ref_src=twsrc%5Etfw\">#CELShortSqueeze<\/a> army behind it, could CEL pump to $3 next?<\/p>\n<p>LIKES\/RETWEETS APPRECIATED <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5axZiwcl1Q\">pic.twitter.com\/5axZiwcl1Q<\/a><\/p>\n<p>\u2014 WSB Crypto Mod  (@traderrocko) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/traderrocko\/status\/1558101919461154817?ref_src=twsrc%5Etfw\">August 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>It is possible to create a short squeeze because of CEL&#8217;s lowering circulating supply, primarily due to the freeze on Celsius Network&#8217;s token transfers. <\/p>\n<p>Interestingly, FTX <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dune.com\/0xManny\/cel-short-squeeze\">had about 5.1 million CEL tokens<\/a> on Aug. 13, approximately 90% of all the total circulation across exchanges. Meanwhile, the amount of open short positions on the exchange was around 2.66 million CEL versus the monthly high of 2.96 million CEL on Aug. 11.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/99b1d4e8-2c2d-4d07-8b8e-3b8b960b18b9.png\"><figcaption style=\"text-align: center;\"><em>FTX sport short. Source: Legacy Synthesis<\/em><\/figcaption><\/figure>\n<p>In other words, short traders have closed about 300,000 CEL positions in just two days.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_next_for_Celsius_toke\"><\/span>What&#8217;s next for Celsius toke?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Short squeezes are hard to sustain over a long period, history <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bakertilly.com\/insights\/investors-beware-on-the-market-impact-of-a-short-squeeze\">shows<\/a>.<\/p>\n<p>Such prospects put CEL at risks of facing extreme correction in the coming weeks or months. As said, the token is already overbought, which further adds up to the downside outlook.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/dcd550e4-7f73-4dbf-96bf-cce41cbf9e15.png\"><figcaption style=\"text-align: center;\"><em>CEL\/USD three-day price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Drawing a Fibonacci retracement graph from $6.5-swing high to $0.39-swing low churns out interim support and resistance levels for CEL. Notably, the token now eyes a breakout above its 0.618 Fib line (~$4.21), with its upside target at $5.25, up 45% from today&#8217;s price.<\/p>\n<p><strong><em>Related:\u00a0Crypto markets bounced and sentiment improved, but retail has yet to FOMO<\/em><\/strong><\/p>\n<p>Conversely, a break below the support level at the 0.5 Fib line (~$3.48) risks crashing CEL toward $2.75, down 25% from the current price level.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/celsius-network-is-bankrupt-so-why-is-cel-price-is-up-4-000-in-two-months\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Celsius Network is bankrupt,\u00a0so why is CEL price up 4,000% in two months? &#8220; Crypto lending platform Celsius Network has an approximately $1.2 billion gap in its balance sheet, with most liabilities owed to its users. In addition, the firm has filed for bankruptcy protection, so its future looks bleak. Still, Celsius Network&#8217;s native&#8230;<\/p>\n","protected":false},"author":1,"featured_media":484117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvZmQ0NjhlNDAtMDQxYS00OTUzLThkMjMtYjliZDA5OGU4NjhhLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,77595,74939,90109,91283,4978,70790],"class_list":["post-484116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-lending","tag-market-analysis","tag-peer-to-peer-lending","tag-pump-and-dump","tag-bankruptcy","tag-goldman-sachs"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/484116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=484116"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/484116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/484117"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=484116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=484116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=484116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}