Celsius (CEL) Move 653 Million Tokens to a New Wallet: To What End?

• About $84.33 million worth of CEL was moved to an unknown wallet by the project.
• CEL could drop to $0.11 as long as selling pressure remains dominant.
• Buying momentum has to increase for the token to have any short-term growth potential.

Decentralized lending project Celsius (CEL) has transferred a substantial amount of its holdings to a new wallet. Cam Crews, who is a developer, made it known that CEL tokens were not the only cryptocurrencies involved in the movement.

According to Crews, Celsius transferred about $30 million worth of Ethereum (ETH) and other stablecoins alongside $84.33 million worth of CEL.

While the reasons for the movement were undisclosed at press time, speculation went around that the network was either planning to secure its assets or offload some of them. On October 5, Celsius recently revealed that it got wind of an attack on its customers.

In the said post on X (formerly Twitter), Celsius mentioned that it was implementing procedures to avert the potential attack. Therefore, it is possible that the transfer of the tokens was one of the measures it was taking to mitigate the ambush.

For CEL, its price was $0.126 at the time of writing. This value represents a 16.80% decrease in the last seven days.

CEL Price Action

The CEL/USD 4-hour chart showed that the market structure was very bearish, as there has been a series of downtrends.

This decline was a result of selling pressure caused by the loss of faith investors once had in the Celsis project. Indications from the Relative Strength Index (RSI) revealed that CEL was oversold as the indicator value was 29.10.

At the same time, the oversold condition is also a ground for CEL’s price to return to the upward direction. However, this will also depend on the buying momentum. If buying pressure increases, CEL could first move into the $0.13 to $0.14 region.

However, an uptick seemed unlikely, as indicated by the Directional Movement Index (DMI). At press time, the +DMI (green) was 13.91, while the -DMI (red) was 36.44. The large difference in the indicators suggests that buyers have almost no say as regards CEL’s directions.

This sentiment was also reinforced by the Average Directional Index (ADX). At the time of writing, the ADX (yellow) was 32.63. Typically, an ADX value over 25 indicates a strong direction. However, when the ADX is less than 25, it suggests a weak direction for the asset in question.

Hence, CEL’s likely direction would be further downside. Considering the current market condition, CEL may drop as low as $0.11.