Massive token burn leads to Celsius (CEL) surging by 360%
The native token of the now-defunct Celsius Network, CEL, has experienced a remarkable price surge following a significant token burn. According to on-chain data, Celsius burned over 94% of its total supply on April 30, reducing it from 695.65 million CEL to 40.55 million CEL. These tokens were sent to a null address, making it the third-largest transaction in Celsius history.
As a result of this burn transaction, CEL has seen a 360% increase in value over the past week. In the last 24 hours alone, the asset has risen by 67% and is currently trading at $0.94, a level not seen since November 2022.
The total market cap of Celsius currently stands at $38.2 million, with a daily trading volume of $78 million.
Santiment data reveals that the CEL Relative Strength Index (RSI) has surged from 82 to 89 in the past 24 hours. This indicates that Celsius is currently overvalued and at risk of 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 potentially lead to higher price volatility and increased liquidations.
Despite the price surge, the Celsius total funding rate remains around negative 0.004% at the time of reporting. This suggests that traders betting against CEL’s price increase are slightly outweighing long-position holders.
Given the heightened RSI and open interest, CEL is currently in a high volatility zone, and a price plunge may be imminent.
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