The Celsius network has been shut down and withdrawals have been put on hold about a week from now, while the platform is claimed to be working very hard to resolve the issue as quickly as possible. The market has since shaken strongly as bitcoin price breached the rock bottom level below $18,000 amid uncertainty. However, CEL prices have been making a significant jump from the opening trading hours which seems to be more or less a calculated approach for the price push up.
CEL price was consolidating below $1 for quite a long time and was unable to break above the $0.77 level. However, the bulls swung into action during the early trading hours to propel the price higher. But ultimately, the CEL price rally seemed to be a pre-determined bounce, where the consequences could be quite drastic.
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The CEL is believed to have suffered a significant price correction, pushing the price up more than 110 percent to a daily high of $1.53. Unfortunately, traders have now started taking their profits and hence the price has dropped by about 30%.
A short squeeze occurs when a number of traders have short and the price goes up. In such a case, short-sellers close their positions quickly which in turn pushes up the price. Here, along with CEL price, traders join the trend #CELshortsqueeze on Twitter. They bought large amounts of CEL tokens from the spot market and transferred them to non-custodial wallets such as MetaMask.
This reduced the circulation of the CEL token in the market for short-sellers who are expected to buy back their positions by creating buying pressure. However, currently, CEL prices are down by around 30% from the day’s high, indicating that traders have withdrawn their gains from short-squeezes. Therefore, the price of Celsius Network (CEL) could rise, but if traders who bought the CEL token liquidate their holdings, the price would return to the opening level below $0.7.
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