Since June 14, Celsius has been under a lot of discussion and constant spotlight due to its recent performance. The recent performance of Celsius shows that it has experienced massive growth in its trading price.
The price of CEL experienced significant growth from a low of $0.18 to a high of $1.55. However, CEL’s price wasn’t able to sustain its high price and ended up retreating. Following the retreat, the trading price of CEL went down to $0.60.
The performance graph shows that the spike and the retreat took place in a single-hour candle.
Analysts Sharing their Concerns over the Recent Spike
While the majority of the investors rejoiced at the spike experienced in CEL’s price, analysts have shared their own concerns. It seems that the analysts are on the fence as they are pointing out two possibilities that could’ve led to CEL’s recent spike.
The first possibility that the analysts have pointed out is that Celsius is regaining its reputation in the market. Just recently, Celsius seems to have made a repayment towards its debt. This could have triggered positive sentiments of the investors, thus, elevating the trading price of CEL.
The second possibility is the short squeeze that could have been caused by one of the cryptocurrency exchanges. The analysts have highlighted a possibility that it could be because of an error that may have been made from the FTX exchange’s end, causing a spike.
Trust of Investors May be Boosting Due to Repayment of Debts
For a while, Celsius has been busy taking care of the debts that it owed to many of its supporters. As Celsius is finally able to take care of that, things seem to be turning out for the best for the protocol.
The repayment of debts seems to be working like a charm for Celsius as it may be regaining the trust of the investors. With the investors witnessing the repayment activities, their confidence may be rebuilding in Celsius. It might be the reason why Celsius is witnessing a growth in its trading price.
FTX’s User Interface Problem
It may be a fact that CEL’s price could have surged due to the debt repayments but its 600%+ rise could’ve been due to the FTX glitch. This is because many FTX exchange users complained that they were unable to carry out actions on CEL tokens.
The users complained that they were unable to buy and sell CEL. However, the number of complaints from the sellers was much higher than the number of buyers. This means that the rally recorded for CEL was unnatural and was caused due to a glitch at FTX’s end.
This means that the investors who have invested or are planning to invest in CEL may not be able to see the gains they would be expecting.