CEL, the native token of the Celsius Network, has recently sent tongues wagging across the broader crypto industry, with a staggering 370% price rally jotted over the past week. Primarily attributed to the token’s massive burn initiated lately, this price rally rides the back of other bullish market statistics, fueling additional market optimism on the token.

Here’s a closer look into what sparked CEL’s recent phenomenal price rally and its current price movements.

Celsius Network Burns 94% of Supply

Data surfacing across the global crypto industry illustrates that the Celsius network burned a staggering 652.2 million CEL tokens on April 30 by transferring them to a null address. The colossal amount of tokens destructed marked the killing of a whopping 94% of CEL’s total supply, instilling immense bullishness for the token.

Following the massive incineration, the total supply, which stood at 692.8 million CEL, shredded down to 40.6 million CEL, leading to a price rally. This price rally gradually gained substantial traction, resulting in a weekly pump of roughly 370% for the token.

It’s worth noting that this massive burn comes as a part of the firm’s bankruptcy filing.

Further what sets CEL’s price rally apart is its defiance of the current broader market trends. Despite the market’s heightened volatility, on-chain data underscored CEL’s bullish stance, illustrating a market uptrend and further enhancing the token’s appeal crypto market participants.

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CEL Price Movements & On-Chain Data

As of writing, CEL’s price witnessed a 40.10% upswing in the past 24 hours and is currently trading at $0.7185. The token’s market cap surged by 40.10%, followed by a 14.48% increase in 24-hour trading volume.

Coinglass data illustrated a 72.01% rise in CEL’s open interest, reaching $13.69 million, whereas its derivatives volume spiked 26.62%, reaching $319.09 million. This further underscored the presence of a market uptrend, potentially driven by rising interest among investors and an increase in the token’s derivatives market trading activity.

Meanwhile, the RSI hovered at around 80, hinting that the asset is an overbought territory. This sets the stage for a potential price pullback or correction, as it may have risen too quickly.

Technical indicators flagged a strong buying sentiment for the token in the market, further flagging that a pump may be expected in the short run if buying pressure persists. However, the RSI continues to cloud the token’s long range price movements in an enigma.

Also read: UK Minister Warns Against Stricter Crypto Regulation, Here’s All

The post Celsius (CEL) Price Rockets 370%, Here’s Why appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am