Altcoins, Cryptocurrency, News, Price Analysis

What You Could Be Missing About Celsius’ (CEL) 261% Parabolic Surge

The Celsius price chart might make you wish you purchase some CEL tokens before its bullish upsurge. Furthermore, its parabolic rally this week had it leading as the best performing token in the top 100 digital assets.

CEL saw a whopping 261% upsurge to hit a $4.23 monthly peak on its charts. The move was massive enough to propel the alt back to January 2022 value area.

Meanwhile, while CEL retraced to press time $3.62, following some profit booking, it stayed well inside the overbought region.

Impressive rallies like what CEL saw this week attract colossal pullback, especially with the controversy surrounding it. However, the tale was different. Why? Let us dig deeper.

The Fights Between Short Sellers and Whales

We may have to go some weeks back to identify what’s behind CEL’s rally. First and foremost, its mother network Celsius suffered massive losses amidst the May-June market crash. The firm recently filed for insolvency and stared at a collapse.

That revealed a lucrative time for short sellers to enjoy some returns. Meanwhile, large wallet investors saw a chance to capitalize on short-sellers through increasing demand.

The alt’s realized loss hit 719,450 CEL high within the past day. That might explain the short positions erased from the market.

Meanwhile, the crypto’s realized market cap HODL Waves index surged to a 4-week high over the last day. That highlighted incoming liquidity enjoying the bullish run.

Celsius’ short squeeze resembled GameStop last year. Retail investors and whales purchase the token awaiting a crash, trapping short-sellers. Short positions liquidation propels price higher, translating to heightened bullish pressure within the market.

A Balloon Awaiting to Pop?

Short squeeze cases usually attract increased buyers, especially retail investors looking to capitalize on the action. Meanwhile, the price surges substantially by the period they all buy.

More inflows lead to adequate exit liquidity for short squeeze executors. CEL’s mean invested age index shows that more liquidity emerged from August 7. Curiously, the MVRV ratio had declined significantly at the time.

The realized value remains high enough to attract early executors to exit. CEL saw its market capitalization growing by over $600M within the past seven days. Precisely, the mentioned rally doesn’t negate that Celsius applied for insolvency.

Editorial credit: FellowNeko / shutterstock.com

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