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Celsius Network prices rebounded on Friday after the latest news about the company’s bankruptcy proceedings. The CEL token price jumped to his highest since August 24th at $1.6835. It jumped more than 100% from its August low.
CEL is the native token of Celsius Network, a Nexo competitor that filed for bankruptcy in June of this year. At its peak, the company had billions in customer deposits and was one of the biggest success stories in the cryptocurrency industry.
In May, the company announced that it was suspending deposits and withdrawals as the prices of most of its tokens plummeted. The CEL token surged Friday after the company asked the judge overseeing the case for permission to release $50 million to customers.
These funds reside in company custody accounts designed to hold digital assets. In a statement, the judge said the matter will be heard on Oct. 6, this year. Still, those funds are a tiny fraction of his over $200 million and remain in company custody accounts.
At the same time, the company still owes customers more than $4.2 billion in assets in the company’s earnings account. Therefore, the company’s future is still in question, despite some acquisition attempts.
This news caused the price of the Celsius network to rise. For a low-volume asset like CEL, good news usually catches the attention of day his traders. This explains why the token price has become parabolic. It also explains why the VGX price has increased. VGX is the native token of Voyager Digital, a company that has filed for bankruptcy.
The 4-hour chart shows that the CEL price has been in a strong bullish trend for the past few days. It climbed to the June 21 high of $1.5810. With the move up, the Relative Strength Index (RSI) is approaching overbought levels, just above the 25- and 50-day moving averages.
Celsius Network prices are therefore likely to resume their bearish trend as the hype around a $50 million return eases. If this happens, the coin may retest the critical support at $1.06.
Post-Celsius Network Price Prediction: Why CEL Is Soaring, first appeared in CoinJournal.
