Looking at the CEL price chart, you will want to buy some tokens before the bullish rally. In fact, its parabolic move this week earned it the top spot as the best performer among the top 100 cryptocurrencies in the market.
CEL jumped 261% to a monthly high of $4.23 on the chart. The rally was strong enough to push the price back to January 2022 levels. It is currently back at the $3.62 level at the time of writing, but remains in overbought territory after some profit-taking selling.
A rise like this week’s CEL would normally be followed by a significant drop, especially given the controversy surrounding it. But it wasn’t. This is why –
The Battle of Whales and Shortsellers
To fully understand why CEL is rising, we need to go back a few weeks. Its native his network, Celsius, suffered heavy losses thanks to crashes in May and his June. The company recently filed for bankruptcy and is headed for a major collapse. This provided a perfect opportunity for short sellers to meet their end. But deep-pocketed bulls saw an opportunity to profit from short sales by boosting demand for them.
Realized losses in CEL reached 719,450 CEL in the last 24 hours. This may reflect short positions that have been pushed out of the market. Meanwhile, his HODL Waves indicator of realized market cap surged to a four-week high in the last 24 hours.
The foregoing seemed to highlight all the liquidity coming in on a bullish wave.
Celcius’ short squeeze brings to mind GameStop in 2021. Whales and private investors buy assets that are expected to crash, trapping short his sellers in the process. The liquidation of short positions will push the price even higher, adding bullish pressure to the market.
Is CEL a bubble waiting to burst?
The short squeeze scenario usually continues to attract more buyers. However, by the time most people buy, the price has already increased significantly. More inflows will ultimately provide sufficient exit liquidity for those executing the short squeeze.
CEL’s Average Dollar Investing Age Index confirmed that most of the liquidity began to flow in around August 7th. Interestingly, this was around the same time his MVRV ratio dropped significantly.
Realized value is already high enough to drive early entries out of the position. CEL’s market capitalization has increased by over $600 million over the past seven days. Simply put, the aforementioned rise does not negate the fact that Celsius has filed for bankruptcy.
https://ambcrypto.com/heres-what-youre-missing-about-cels-261-parabolic-rally Here’s what you missed about CEL’s 261% Parabolic Rally.