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In a recent article, I discussed why CEL may continue to decline in the coming months. I also discussed the recent breakout that occurred in September and the regulatory risk associated with the cryptocurrency. The following article is a followup to that article. Read on for a more in-depth analysis. Crypto market wrap CEL rallies with other altcoin prices
CEL price declines during the next few months
After the massive rise in CEL prices last month, the token started to fall in June and dropped to $0.03 by November. The Celsius network attributed the drop to rising community sentiment. The CEL price reached an all-time high of $8.02 on 3 June, after which the token declined slightly in November. On that same day, the Celsius network revealed that it has invested $200 million into a bitcoin mining operation.
The Celsius price is expected to increase gradually over the next few months, according to the predictions of cryptocurrency exchanges. In June, the CEL price is expected to be $6.7, while in December, it is predicted to reach $13.7. In addition to Walletinvestor, Liquid, and Celsius Network have all shown support for CEL. If the CEL price increases in June, it is likely to reach $10 in 2019.
CEL price rallying with other altcoins
The Celsius Network token is rallying with other altcoins in the crypto market wrap as investors are encouraged by its stability and promising future. The Ethereum-based token first hit a 14-month low in January and continued to tumble. The company announced partnerships with DOGE and Polygon to improve the interoperability of the coin. CelsiusX recently launched a DeFi version of the Celsius coin. Until April, the Celsius price traded sideways around the $3.30 level.
Short sellers are people who bet against the price rising. Then, when that asset rises, they must buy it to cover the margin. If the price rises higher than the short seller’s margin, the short seller’s position is called a “short squeeze.” The last such situation occurred in January 2021 when investors bet on the short squeeze of GameStop. The shorts couldn’t cover their positions and the price soared 1,000% in two weeks.
CEL’s breakout in September
The Celsius network has attributed the success of the recent breakout to an increased community sentiment. Its recent announcement of a $200m investment in a bitcoin mining operation is another important factor behind the rising price of the token. As a result, Celsius has been able to maintain its momentum and is set to break out to new highs. The token’s breakout in September is important because of the huge potential it holds.
In June, Celsius fell below $5. Then, in July, it hit $7, and then dropped back to $5. In August, it was back below $5. Then, it reached $6 during October after Sushiswap announced its listing. The price then resumed its downtrend after a short period of time. WalletInvestor, a crypto learning website, is very bearish on CEL and calls it a “bad” long-term investment.
CEL’s regulatory risk
Last week, Celsius Network, LLC, a cryptocurrency exchange, warned customers that CEL is vulnerable to regulatory risks and tightened its “Risk Disclosures” messaging. Celsius’s website notes that the Earn Program “may be risky, due to possible token theft and other issues” and mentions regulatory risks, such as lost keys, irreversible transactions, and failing chains. A regulatory risk can be difficult to identify and is one of the most common reasons that investors choose to exit crypto investors.
While Celsius is not yet regulated in the U.S., it is still susceptible to the same risks that plague other cryptocurrencies, including theft, loss of keys, and failure of the underlying blockchain. However, the regulators have recently targeted Celsius because they have failed to adequately disclose their regulatory risks. In response, the company has banned non-accredited U.S. investors from earning rewards on its Earn platform. The regulatory risk for Celsius is so high that it may not be suitable for investors in many countries.
