Cryptocurrency lender, Celsius recently suspended the withdrawals over its platform which caused panic among the investors. However, its native token CEL prices have registered a whopping surge of 130% in the last 24 hours.
CEL 24 hour trading Vol Jumps by 406%
Celsius token dropped by over 50% to touch the $0.20 price level on June 13th. Since then the token has gained upward momentum. Cel prices have jumped by over 375% in the past 7 days. This is the highest registered gain among any top 100 cryptos over the past week. CEL is trading at an average price of $1.51, at the press time. Its 24 hours trading volume has surged by over 400% to stand at $66.7 million
Meanwhile, as per experts, this sudden price jump is supported by the short squeeze setup. Around 87% of the CEL tokens supply is reportedly locked on its own network. While the withdrawals are still frozen the Celsius token is being highly shorted on the FTX platform.
Short traders borrowed around 18 million CEL tokens on FTX exchanges and sold them over different platforms. This leads to the CEL price crashing down to $0.20. The traders put a short order in FTX to buy around 37 million tokens at just a price of $0.01. This certainly bets that the Celsius network will fail eventually.
As of June 20, over 11.29 million CEL tokens are available on the exchange wallet. Meanwhile, Celsius has a supply of over 695 million out of which around 320 million token lies in the treasury.
Celsius aims to fix liquidity
The Celsius Network in a recent release mentioned that its objective remains to be stabilizing our liquidity and operations. However, this process will take some time. Meanwhile, the crypto lender has come forward to repay $10 million worth of DAI stablecoin to Compound Finance.
As per the Etherscan, Celsius collected around 166 COMP tokens, then repaid 10,030,653 DAI tokens to the Compound. However, this move comes in a series of transactions. Earlier, the network payback more than 53.6 million DAI tokens to its vault with the help of the Oasis protocol.
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