New Jersey based company Celsius filed for Chapter 11 bankruptcy protection on July 13,2023. Crypto lenders like Celsius experienced a boom in business during the Covid-19 Pandemic. They attracted depositors with high-interest rates and easy-to-access loans that cannot be provided by traditional banks. The crypto lender made huge profits from the difference by lending tokens to mostly institutional investors.
The bullish rally for Celsius began at the start of 2023 when the price started to rise from the low of $0.4619 level. This move caused an increase in the price of approximately 48.47% and led to the creation of an annual high at the $0.6867 level. Since then the price has been in a strong bearish trend performing a zone-to-zone breakout to reach the current level.
In the month of May, Cel’s price broke the major support of $0.2674 and melted down to form support at the $0.2050 level. The cryptocurrency price entered into a consolidation zone ranging between $0.2050 and $0.2270. During the start of June, the Cel price finally gained bullish momentum and shattered the resistance level of $0.2270. Cel price is currently headed toward the previous zone and might face rejection from the support turned resistance of $0.2674 level.
Possibility of a Bullish Rally
To regain the trust of traders in the bullish rally, the cryptocurrency price needs to rise above the $0.4619 level and head toward the yearly high. The breakout might be considered as a short-term pullback for the price to fall down further lower. There is the possibility that the price might rise till 100-day EMA and then enter into a wide consolidation zone ranging between $0.2050 and $0.3280.
Will Cel Price Shift Trend From Bearish to Bullish?
Cel price crossed above the 20-day EMA, indicating active participation of bulls in the market. Chaikin money flow score is still below the 0 mark and is currently at -0.02, indicating weakness in the market. CMF was below the 0 mark for the whole month of May, suggesting how strong is the bearish momentum in the price.
Celsius price is down from its all-time high ($8.02) by -96.96%. RSI trades at 57.05, indicating bullish momentum rising in the market. The price crossed above the upper band of Bollinger, suggesting a possibility of reversal. The long/short ratio of Cel is 0.98, with 49.5% longs and 50.5% shorts in the last 24 hours.
Conclusion
The overall market structure and price action for Celsius is bearish, but Cel price is showing increasing participation of bulls. The breakout might be a short-term pullback for the price to fall further. The technical parameters still favor sellers.
Technical levels
Major support: $0.2050 and $0.2270
Major resistance: $0.2674 and $0.2940
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/04/celsius-price-prediction-cel-price-escapes-consolidation-zone/