The embattled cryptocurrency Celsius has seen its token price surge over 30% today and nearly double over the past week, despite the company having filed for bankruptcy last year. This speculative rally comes even as major cryptocurrencies like Bitcoin show only modest gains.
This price action likely represents a whale pump that could be dumped at any time rather than a recovery of real value. With Celsius’ core lending functions shut down after its bankruptcy, the token now lacks real fundamentals to justify its gains.
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Trader Highlights Key Resistance Levels
In a recent tweet, SandalwoodXBT, in anticipating a price dump, shared a technical analysis highlighting price levels where a reversal could occur. In his tweet, experienced trader SandalwoodXBT included a chart marking key resistance levels to watch for a potential Celcius (CEL) reversal.
From the picture chat snapshot uploaded by SandalwoodXBT, we can see three level marked by sky blue boxes. The price has already reached the first zone between $0.33 and $0.36. A breakout above this could lead to the next resistance between $0.55 and $0.61. If broken, the final reversal zone, according to the analysis, is around $0.73.
SandalwoodXBT intend to look closely at smaller time-frames to know the best time to execute his trades. By monitoring lower timeframe price action at these levels, the trader hopes to time short entries on a breakdown.
Tempering FOMO with Caution
While speculative hype has pumped CEL prices higher, SandalwoodXBT’s cool analysis shows identifiable areas where overextended rallies could falter. Traders should temper FOMO with caution at the resistance levels he identified. With Celsius in bankruptcy and its core business shuttered, fundamentals hardly support its recent exuberance. Technical reversals at any time illustrate the precariousness of chasing pumps in effectively defunct cryptos.
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