Celsius, which suspended withdrawals on June 12, announced its bankruptcy on Twitter yesterday. But despite this, the CEL price is rising rapidly. Community-initiated “CEL Short Squeeze” helps altcoin price recover 80%.
Celsius (CEL) price explodes due to “short squeeze”
Celsius is a crypto lending DeFi platform. After Three Arrows Capital, Celsius also declared bankruptcy due to heavy selling in the market. The crypto company has declared that its estimated liabilities, according to its chapter 11 bankruptcy filing, are between $1 billion and $10 billion. News of the bankruptcy trended on Twitter with the hashtag “#CELShortSqueeze”. Investors shared that they were in a difficult situation on social media.
Short squeeze is an unusual situation that triggers skyrocketing prices. It would take an unusually short position to occur. This situation starts when the price unexpectedly rises. Short investors, meanwhile, are on the losing side. As Kriptokoin.com, we have conveyed what happened on July 14 in this article.
Currently, customers and depositors cannot withdraw their money. This is why many are starting to see “CEL Short Squeeze” as a potential solution. The CEL price rose nearly 80% in just one day, from $0.42 to $0.83. At the time of writing, it’s trading at $0.79, up +20% over the last 24 hours.
Communities gather to intervene in altcoin price
Users are preparing a pupm and dump event similar to the VGX price, which saw an extraordinary 500 percent price increase in just three days. Voyager Digital’s cryptocurrency, VGX, went from 0.14 to $1 in just 24 hours. Just like Celsius, Voyager Digital has been in the dark about getting my customers their money back. Following this, a number of groups and phenomena including MetaForm Labs announced the “PumpVGXJuly18” plan to increase the price of VGX via short squeeze.
Also, whales holding 1-10 million CELs sold only 0.87% of the available supply between the withdrawal ban and filing for bankruptcy, according to Celsius (CEL) whale distribution data from Santiment. This shows that whales still have a significant amount of CEL tokens. In addition, whales continue to sell regularly.
Against short squeeze, CEL purges
Celsius’s price is rising due to sellers shorting CEL on exchanges. Exchanges like FTX, Okex, and Huobi have more than 80% short positions, according to Coinglass.
The data reveals key short positions that have driven the price up in the past 24 hours. In fact, the chart shows the key short positions of the day. This indicates that the CEL deficit may still continue.
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