Celsius (CEL) price gains 600%+, but analysts cite exchange error and a massive short squeeze

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On June 14, the discussion of Celsius remained in the media headlines and today’s news involved the platform CEL Token, which is making massive gains after an exchange glitch or short-squeeze. CEL price rose from $0.18 to $1.55 in one sudden candle and then dropped back to $0.60 within the same 1-hour candle.

CEL/USDT 1-Day Chart. Source: TradingView

Analysts are currently on the fence about the reason for the explosive price breakout. Some cite Celsius as a reason to pay off a portion of their debt, while others point to a possible error on an FTX exchange that appears to be a small squeeze.

Is debt repayment increasing investor confidence?

Celsius is scrambling to cover many of its debt and it is possible that some investors see this as a sign that the platform will be able to survive the current catastrophe.

Twitter analyst Hasaka said on-chain data shows that $28 million in DAI that was recently deposited into a wallet controlled by Celsius and has since been sent to a different address, he said. Identified as a loan repayment address.

Celsius Wallet Transactions. Source: Twitter

Analysts believe that Celsius’ strategy is to reduce its liquidation value in the MakerDAO vault where it keeps the funds and ultimately avoid bankruptcy.

User Interface Problems on FTX

While the introduction of loan repayment may have helped inspire greater confidence in Celsius, many crypto traders reported issues when trying to buy and sell tokens on the FTX exchange.

many answers to Tweet User difficulties as confirmed above when trying to sell CEL and Twitter user Karl Larsen on FTX Told that they can “only fill my shorts at 0.87-0.95.”

It is likely that difficulties with the user interface on FTX played a part in the rapid spike in CEL. noted By analytics provider TheKingFisher, who posted the following chart highlighting when the user interface went down in relation to the CEL price being pumped.

CEL/USD price. Source: Twitter

According to The Kingfisher, when UX went down, “most traders” [were] unable to defend [or] reduce their positions. ,

The firm said,

“The spot market moved above $2 to break the index and trigger liquidations on purpose. This is a spot manipulation to eliminate traders. The index is being calculated on the FTX itself. This is their defense against fraud. is not out of bounds [to] Keep the market organized.”

related: Nexo offers to buy Celsius loan amid withdrawal suspension

it’s just another little squeeze

As Salim Lala pointed out, some analysts say that the fall in prices was nothing more than a slack in the past.

It remains to be seen what happens as the price of the CEL moves forward, and it appears that the most likely culprit was a cascading liquidation as these types of events are relatively frequent during periods of strong market volatility. For example, the on-chain (XCN) token went through a similar event on June 14 as its price fell by 95% due to cascading liquidations.

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