Key Takeaways:
- CEL prices have painted an impressive bull run with a 98% jump in seven days.
- However, Celcius's woes remain far from over.
NEW DELHI (CoinChapter.com) — Troubled crypto lender Celsius Network’s CEL token prices have been gaining a surprising uptrend over the last seven days.
CEL prices clocked almost a 100% jump between Aug 27’s low ($0.84) and Sept 2’s high ($1.67). After ten days, the rally brought the token’s prices back above $1.5. However, the long upper wick on Friday’s candle suggests that bears have moved to book profits.
Additionally, CEL’s 20-day exponential moving average (20-day EMA, red wave) looks poised to cross below its 50-day EMA (purple wave) to form a bearish pattern called the death cross. The pattern forms when a token’s short-term MA trendline moves below a relative long-term moving average.
Traders believe the technical pattern signals negative sentiment and weakness. If the pattern completes, CEL prices might fall to support near $1.23. A market-wide sell-off might lead to CEL prices falling 26% to test support near $1.1 before recovering.
Also Read: Celsius Network can now mine and trade Bitcoin (BTC) despite bankruptcy.
Conversely, for the uptrend to continue, CEL prices would need to conquer a resistance confluence of its 20-day EMA (red wave), 50-day EMA (violet wave), and 100-day EMA (blue wave) near $1.6. The resistance level rebuffed CEL’s recent uptrend on Sept 2.
A move above the resistance confluence might propel CEL to test resistance from its 200-day EMA (green wave) near $2 before prices pull back. Meanwhile, the relative strength index for CEL remains neutral, clocking at 46.96 on the daily charts.
CEL Is Rising, But With Celsius Seems To Be Sinking
Celcius Network’s problems seem to be worsening. In a filing with the New York Bankruptcy Court, Celsius stated that it plans to return only 22% of the total $225 million to its users by restarting withdrawals for a short time.
Celsius also shared that it has filed for the rights to reopen withdrawals on Custody and Withhold accounts, which act as crypto wallets.
The filing stated that nearly 58,300 users have deposited nearly $210 million in custody and withheld accounts.
The beleaguered firm argued that unlike users of its Earn and Borrow products, Celcius users with custodial accounts maintain ownership of their crypto assets, as “cryptocurrency assets in the Custody Program and Withhold Accounts likely do not constitute property of their [Celcius’s] estates.”
As such, the funds in these accounts belong to customers, not Celcius.
“Accordingly, the Debtors believe it is fair and appropriate to permit customers to withdraw those cryptocurrency assets at this time. By this Motion, the Debtors seek authority to permit certain customers to withdraw their cryptocurrency from the Custody Program and Withhold Accounts.“
The filing stated
The court has set a hearing for Oct 6 to discuss the filing.
At writing, CEL was trading at $1.48, up 6.16% on the day.
Since you are here, CEL prices had previously jumped nearly 5,000% in just two freaking months. Click here to find out why
