Celsius has been facing bankruptcy which forced its native token CEL to tumble.
- CEL has risen by 100% in the past 7 days on a reported short squeeze.
- Analysts warn that the rally could wane due to the lack of fundamentals.
Celsius CEL/USD token is trading at $2.437 as of press time. The trading represents a gain of around 100% in the past one week. However, there are more red flags to caution investors than there are fundamentals.
The gains in Celsius token have largely been fueled by retail frenzy. A short squeeze Twitter campaign dubbed #CELShortSqueeze started on August 7, raising bull speculations. The retail frenzy comes amid recent liquidity troubles of Celsius that sent the token crumbling. The crisis forced the crypto lender to file for bankruptcy protection on July 13.
As price pumps, retail traders are reportedly snapping CEL tokens on FTX. The traders are reportedly trying to exert pressure on short sellers and force a short squeeze. Samir Kerbage, Hashdex’s chief product and technology officer, commented on the recent squeeze. Kerbage warned that the upside for CEL remains low since the rally is not fundamentally driven.
Celsius token shoots on a growing retail frenzy
Source – TradingView
Technically, the Celsius token is gaining and has already overcome the $2.0 support. A crossover of the 21-day above the 50-day MA affirms a bullish momentum. At the current price, CEL eyes above $3 next.
Concluding thoughts
CEL is bullish, and investors would be better off buying above $2.0. However, there are more doubts than convictions. Celsius faces bankruptcy, and there are doubts the current rally is fundamentally driven.
A retail frenzy on the token with an urge to force a short squeeze may also be unsustainable. Speculating on the crypto token is risky.
The post Celsius token jumps 100% in a week – Are the gains sustainable? appeared first on CoinJournal.
Ndasi Tata is a Bitcoin entrepreneur from Cameroon, who holds an M.Sc in Blockchain and Digital Currency from the University of Nicosia. He is an advocate of Bitcoin in Africa and uses various social media platforms to promote his ideas and ventures. Tata has a background in state journalism and has established himself as a significant figure in the Bitcoin community.
