Source : ambcrypto.com
Crypto service-providing platforms have been in a fix over the past few weeks, and The Celsius Network became a victim as well when the market conditions worsened. However, another one has made it to the list. As of 4 July, another crypto firm called Vauld suspended its services due to the ongoing volatility in the current cycle of the market. However, Celsius is finding its way back, and consequently, it is helping its native token’s investors as well.
Despite the crypto winter, Celsius heats up
Celsius has been paying its dues both literally and figuratively. The network repaid almost $120 million worth of DAI to Maker, which the former borrowed from Maker to prevent its business from collapsing.
However, according to live data, Celsius is yet to pay the entirety of the borrowed amount back as it still has $82 million worth of DAI in outstanding debts.
However, despite the network in the midst of the debt dilemma, the native token CEL has been on the rise. Up by 68.67% in the last three days, CEL managed to close above the $1 mark, although at the time of writing, it sunk by 8.29% to trade at $0.96.
The news of the repayment, however, pumped life back into the investors, who made their presence very evident. Celsius investors were observed shorting the asset, generating $1 million in liquidations over the last 48 hours, which was the second instance within a month, as back on June 20-21, short liquidations crossed $1.7 million following CEL’s 319.61% rally.
A cool future for CEL?
Despite the nature of the aforementioned information, it cannot be said if Celsius will continue the rise in the future. This is because the Parabolic SAR is already indicating an upcoming downtrend in the future. Although the Relative Strength Index (RSI) is in the bullish zone still, it did manage to note a downtick at the time of writing (ref. Celsius price action image).
This could affect the investors who barely began experiencing profits this month thanks to the June rally, which at one point placed CEL 808% above the opening price.
Since the majority of the transactions noted on-chain have been in profit, a metric that could sombre investors is the transaction volume. The network recorded transaction volumes similar to the levels of February and March.
Additionally, 95% of the investors are far from guaranteed profits, thus putting the rest of the 5% in a skeptical position where they would want to keep themselves from joining the former cohort.