Kelvin Daminabo
The native cryptocurrency of Celsius Network, CEL, has experienced a notable surge in price after a substantial token burn that eliminated over 94% of its total supply. The massive burn on April 30 involved sending 655.1 million CEL tokens to a null address, making it the third-largest transaction in Celsius’ history. This event has propelled CEL’s value, with the token soaring by 360% over the past week and 67% in the last 24 hours, currently priced at $0.94.
The total market capitalization of Celsius now stands at $38.2 million, with a daily trading volume of $78 million. Data from Santiment shows that the CEL Relative Strength Index (RSI) has spiked from 82 to 89 in the past 24 hours, indicating that the token is currently deemed overvalued and overheated at its current price level. Moreover, Celsius’ total open interest has surged by 69% within 24 hours, escalating from $7.91 million to $13.39 million, potentially leading to increased price volatility due to a higher likelihood of liquidations.
Despite the impressive price surge, the Celsius total funding rate hovers around negative 0.004% at present, pointing towards traders betting against CEL’s price increase slightly outweighing long-position holders. This, coupled with the heightened RSI and open interest figures, hints at CEL residing in a realm of high volatility, potentially signaling an impending price decline.
The recent token burn and subsequent price surge have reignited interest in CEL among traders and investors, with close monitoring of its performance. However, it is crucial to approach with caution and recognize the associated risks, given the highly unpredictable nature of the cryptocurrency market. As the landscape evolves, observing how CEL’s price reacts to these developments and its ability to maintain current momentum will be key.