Altcoin projects, which are at the top of the Binance list, started to rise after important announcements. Let’s take a look at two current news, one for the court and one for the partnership.
The bankrupt altcoin rallied over 50 percent
The CEL price increased by 50% as Celsius Network aims to return $50 million to its customers. However, the price rally could be stalled due to the prevailing Celsius problems, including its bankruptcy. On the daily chart, the CEL peaked at $1.67 on Sept. 2 after bottoming at $1.15 yesterday. However, the token’s sharp rally is accompanied by lower trading volumes. All in all, it shows a lack of conviction among investors about further upside moves.
The CEL rally came about after Celsius filed a lawsuit in court demanding that its customers withdraw money. Celsius had collected the cryptocurrencies of its customers by offering the highest interest rates in the market. But the market downturn this year has left a $2.85 billion gap in Celsius’ balance sheet. Thus, he prompted the firm to freeze the accounts of its customers. As a result, it has trapped billions of dollars in over a million accounts. In July, Celsius filed for Chapter 11 bankruptcy.
CEL rally will be short
Celsius Network’s willingness to return some of their custody funds to customers is a welcome move. However, BnkToTheFuture CEO Simon Dixon says the amount offered is less than what the firm holds.
#Celsius currently stating that those that were moved to custody 90 days before filing should be withheld. Custody is now $210m & they want to release $50m. They want to reserve the rest for clawbacks. They believe all earn funds belong to #Celsius 🤮 OPINION This is illegal bank https://t.co/efGb3XPU2b
— Simon Dixon (@SimonDixonTwitt) September 1, 2022
Technically speaking, the CEL also risks a sharp price correction in September. On the four-hour chart, the Celsius token has been plotting an “rising wedge” since late August. This classic pattern typically leads to a bearish price reversal as illustrated in the chart below.
CEL is now testing the upper trendline of the wedge for a pullback towards the lower trendline. The second trend line is near $1.34, which serves as a reliable support in the short term. Therefore, a break below $1.34 will intensify the selling pressure. If CEL breaks below $1.34, it opens the door to a drop from the wedge, according to analyst Tashu Gola. In other words, the CEL could drop by 40% from the price on September 2 to $0.87 at the end of September.
Coinbase Cloud broke the good news for this altcoin
Blockchain infrastructure platform Coinbase Cloud announced yesterday the launch of Solana archive nodes, a tool to help developers build products and services that work on the network. Previously, Coinbase Cloud launched custom standard Solana node operators to enable developers to access and verify transaction data from the Blockchain. Expanding Solana archive node operators gives developers access to all historical data back to the Solana genesis block, with Coinbase Cloud taking the heavy lifting.
After the announcement, Solana held its last 24-hour gains around 4% to reach $31.71.
Coinbase Cloud is one of the largest infrastructure platforms to offer the service. It continues to support Solana since the network first started running validators. The news also represents further industry expansion for Solana’s infrastructure, following a similar move by QuickNode and Jump Crypto’s validator client announcement last month.
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