Company announced Celsius Users can withdraw up to $50 million cumulatively from all locked accounts. These funds are intended for users with Celsius Custody software, and deductible accounts. This latest decision led to a 50% increase in the price of CEL.
It is worth noting that the price of CEL coin settled at $1.67, on September 2, which indicates a nice shift in price from $1.15 on September 1st.
The CEL price chart indicates that the currency has lost some of its gains this morning. The price now stands at $1.43, which is still above yesterday’s lows and is showing positive price movements.
But the sudden increase may not be sustainable. The data shows that CEL coin volume has not increased with the price. Analysts see this lower volume as traders are not convinced by the ongoing uptrend.
Imminent drop in the price of CEL coin
CEL 4 hour price chart is showing that the currency has started drawing a rising wedge since the end of August. This pattern is usually a sign of an upcoming bearish price reversal. Also, the currency is testing the upper trend line for a pullback to the lower line.
The recent CEL trend line is closer to $1.34. It was a good support area. Any break below this support may increase selling pressure in the market.
If the maximum distance between the upper and lower trend line of the wedge is measured from the breakout point, the currency may lose 40% of its price on September 2 to stand at $0.87 by the end of September.
Celsius’ bad reputation
Celsius recently asked a bankruptcy court to allow its clients CPWA to withdraw their funds, as the company used users’ funds to operate in the broader market with the promise of delicious returns.
But Celsius froze the accounts when the crypto winter hit her balance sheet.
Data showed that Celsius lost $2.85 billion due to the market crash. The loss led to billions of dollars being locked into more than a million accounts on its network.
The company may have pushed the price of CEL up with this announcement. However, the price may not keep high.
According to Simon Dixon, CEO of BNKToTheFuture, Celsius has a total of $210 million on hold, but the company wants to release only $50 million.
Also, court documents on July 10 showed that Celsius had assets of up to $4.2 billion. These factors will hinder the growth of the CEL coin token, and 50% price growth is a waste of time.
Source: NEWSBTC