Celsius (CEL), is showing signs of recovery in recent months. Since the bankruptcy filings, the native currency of Celsius Network has been on a steep decline. However, it appears that the times are changing thanks to the recovery. Celsius is continuing its proceedings. CEL’s price has risen to as much as $2 over the past week.
CEL Recovery: What is it?
The recovery in CEL’s price has obviously come as a surprise to the market. Altcoin has struggled for years before it finally found its feet again. The rally that ensued has been more than expected on every front. The digital asset is now enjoying a much-needed respite after falling below $1 over the past month.
CEL’s price soared about 50% in the last 7 days alone, causing it to touch as high as $2 in the early hours of Tuesday. The price has since fallen to $1.80 but it continues its bull trend, prompting speculations as to what caused the rise in prices.
CEL’s run-up can be explained by simple supply and demand. Celsius has been in bankruptcy proceedings since it had accumulated large amounts of cryptocurrency on its platform. The majority of the crypto on Celsius’s exchange was held to collect CEL rewards. This is what allowed new supply to be introduced to the market. It has caused a shortage of supply because all cryptos have been frozen (CEL included) and no new supply is being added to the market.
Prices for CEL are at 1.85 | Source: CELUSD on TradingView.com
CEL has more demand now than it can supply. Celsius can’t put new tokens in the market. The only options are currently the available tokens. The short sellers must also close down their positions or they will lose significant money. This leaves only long-term traders, and CEL bulls, to control the market.
The sole reason for this bullish turn has been enough to rewrite the market’s positive part. It is known that bankruptcy proceedings can take many years. The Mt Gox case is an excellent example. With most liquid CEL supplies being stored on the platform for decades, it is likely that there will be a long-term squeeze.
The reason for this is that not many price forecasts are being made for the altcoin. Coinmarketcap has released price estimates that show investors expecting altcoins to reach $0.77 by September.
Featured image taken from The Coin Republic. Chart from TradingView.com
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