CEL, the native token of the now-defunct Celsius Network, has experienced a remarkable price surge following a large-scale token burn.
On April 30, Celsius burned over 94% of its total supply, reducing it from 695.65 million CEL to 40.55 million CEL. These tokens were sent to a null address, marking the third-largest transaction in Celsius history.
Following this burn, CEL has surged by 360% over the past week. In the last 24 hours alone, it has increased by 67% and is currently trading at $0.94, a level last seen in November 2022.
The total market cap of CEL is currently $38.2 million, with a daily trading volume of $78 million.
According to data from Santiment, the CEL Relative Strength Index (RSI) has risen from 82 to 89 in the past 24 hours. This suggests that Celsius may be overvalued and experiencing overheating at its current price.
Additionally, Santiment reports that Celsius’ total open interest has increased by 69% in the last 24 hours, rising from $7.91 million to $13.39 million. This sudden surge in open interest could lead to higher price volatility for CEL, as there is a greater likelihood of increased liquidations.
Despite the price surge, data from the market intelligence platform shows that Celsius’ total funding rate is hovering around negative 0.004%. This indicates that traders betting against CEL’s price increase are slightly outnumbering long-position holders.
With the heightened RSI and open interest, CEL is currently experiencing high volatility, and a price downturn may be imminent.
