Celsius revealed that it was possible to withdraw as much as $50 million cumulatively from locked accounts. Users who have Celsius Custody Program or Withhold Accounts can access these funds. CEL’s price has risen by half due to this latest decision.
As of September 2, CEL’s price stood at $1.67, showing a good price shift from $1.15 per token on September 1.
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CELUSD Chart Tradingview.comThis indicates that some gains have been lost by the token this morning. It now stands at $1.50, which is still higher than yesterday’s lows and shows positive price movements.
The sudden rise in prices may not be sustained. Data shows that CEL trading volume didn’t spike with the price. Analysts see this low volume as traders’ lack of conviction in a continuing uptrend.
Imminent Price Drop For CEL Looms
CEL shows that tokens have been shifting to a rising wedge pattern since August’s end. This sign is often a warning of an impending bearish price turn. CEL also tests the upper trendline to see if it is possible for the line to pull back towards the lower.
CEL trendline 2 is near $1.34. It serves as a support zone. Breaking below this level could lead to increased selling pressure. If the CEL price falls below $1.34, a rising wedge breakdown will occur.
By that, the token’s downside target would be as low as the maximum distance between the upper and lower trendline of the wedge if measured from its breakout point. CEL may lose 40% by September 2, and could be at $0.87 by September 31st.CELUSD Price Chart from TradingView.com
Negative Principles hanging over Celsius
Celsius requested recently that the Bankruptcy Court allow its CPWA customers to withdraw their funds. Celsius utilized users’ funds to operate in the broader market while promising them mouth-watering returns.
However, the company froze its accounts as the crypto winter wreaked havoc on the balance sheet. The market crash caused Celsius to lose $2.85 billion, according to data. It lost billions in its network, with more than one million accounts.
The firm might have pushed CEL’s price up by this announcement. It might not be able to sustain this price rise. Simon Dixon (BNKToTheFuture CEO) stated that Celsius holds $210 Million in CPWA money. The company is requesting $50 million.
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Additionally, effective July 10, there will be a new website. court documentsAccording to data, Celsius Earn Accounts held assets worth $4.2 billion. These issues will prevent the network token from growing. The 50% increase in price could be wasted if the company doesn’t take the necessary actions.
Featured image taken from Pixabay. Chart from TradingView.com