From Low to High: A Price Surge Story
The CEL token, native to the Celsius Network, saw its price shoot up from $0.67 to a jaw-dropping $1.59 in just two days – talk about a financial rollercoaster! This spike represents a whopping 180% increase between June 19 and June 21, while the broader crypto market lagged behind with a mere 12.37% uptick during the same period.
The Short Squeeze Shocker
What fueled this unforeseen surge? The drama began when a market analyst named PlanC threw down a $20 million bounty for anyone capable of proving that the Celsius Network was the victim of a coordinated attack. This news, of course, landed like a lead balloon, leading the firm to stop withdrawals, and igniting a frenzy across social media.
#CelShortSqueeze: A Trend on Twitter
In the wake of the announcement, Twitter experienced an explosion of activity as traders rallied around the hashtag #CelShortSqueeze. Users flocked to the platform, hastily adding the hashtag to their bios, reminiscent of some modern-day financial flash mob. The keyword searches for “CEL short squeeze” were on fire, hitting the maximum interest score of 100, knocking it out of the park on Google Trends.
The GameStop Comparison
This situation isn’t without its parallels to the infamous GameStop saga of January 2021. Back then, Reddit traders united to squeeze Melvin Capital and the like into submission; similarly, the CEL enthusiasm left many short-sellers in a spectacular mess, having to buy back tokens at inflated prices to cover their positions. Yes, folks, they got REKT!
Celsius Network: Risks Lurking Ahead
However, let’s not forget that all that glitters isn’t gold. While CEL saw spirited trading, the underlying threat remains real. Celsius Network once boasted over $20 billion in assets, but as of late May, it only reported $12 billion. With the firm scrambling to maintain unsustainable yield rates of up to 18% on deposits, the specter of insolvency looms larger than a kid on a sugar rush. Despite the short squeeze excitement, CEL is still trading an astonishing 84% below its April 2021 peak of $8!
What’s Next for CEL?
As of now, the CEL/USD pair’s sights are set on a formidable resistance level of $1.95. Should it successfully break through that barrier, it may be on track to tackle $3.11. Conversely, if market sentiment shifts negatively, we might be staring down the barrel of a pullback towards $0.34, a concerning 73% drop from the recent highs.
