Prices of Celsius (CEL) rise by 600% +, but analysts cite exchange rate error and extremely short crisis

Prices of Celsius (CEL) rise by 600% +, but analysts cite exchange rate error and extremely short crisis – Mail Bonus

On June 14, discussions about Celsius continued to fill media headlines, and news on June 14 meant that the forum’s CEL logo was gaining much traction after what appeared to be either a currency shortfall or a short squeeze. CEL prices rose from $ 0.18 to $ 1.55 in one sudden candle before falling back to $ 0.60 in the same hour candle.

CEL / USDT 1-day chart. Source: TradingView

Currently, experts on the fence are about the reason for the explosive. Some cite Celsius’ repayment of part of its debt as a reason, while others point to a possible error on the FTX exchange as a reason for what appears to be a short squeeze.

Are debt repayments increasing investor confidence?

Celsius has been competing to cover the amount of its debt, and some investors may see this as a sign that the platform can survive the current turmoil.

Hsaka’s Twitter analyst said the chain’s data shows that $ 28 million in Dai (DAI), which was recently put into a wallet under Celsius’ control and has since been sent to a special address, which he identified as the repayment address of the debt.

Celsius wallet business. Source: Twitter

Analysts believe that Celsius’ policy is to lower its bankruptcy price in the MakerDAO vaults, as it stores money and ultimately avoids bankruptcy.

FTX User Interface Issues

While the beginning of debt repayments may have helped to boost Celsius’ confidence, some cryptocurrencies reported problems as they tried to buy and sell the symbol on the FTX exchange.

Some answers to the tweet above confirmed users’ difficulties when trying to sell CEL on FTX, and Twitter user Karl Larsen said that they “could only fill my shorts at 0.87-0.95”.

The possibility that the difficulties with the FTX user interface contributed to the rapid rise in CEL was also noted by research analyst TheKingFisher, which published the following table showing when the user interface went down compared to when the CEL price was pumped.

CEL / USD price. Source: Twitter

According to TheKingfisher, when UX went down, “most traders [were] unable to defend, close [or] reduce their position. “

The company said,

“The emergency market crossed $ 2 to break the index and initiate liquidation on purpose. It is a stain treatment to liquidate traders. The index is calculated on FTX itself. This is not outside the bounds of fraud [to] keep the market organized. “

Connected: Nexo offers to buy out Celsius’ loan amid suspension

This is just another short squeeze

Some analysts say the breach was nothing more than an old-fashioned squeeze, as Saleem Lala pointed out.

It remains to be seen what will happen to the continued price of CEL and it seems most likely that the culprit was bankruptcy because these types of events are relatively common during large market fluctuations. For example, the Chain (XCN) symbol went through a similar event on June 14 and its price decreased by 95% due to bankruptcy proceedings.

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