Celsius Network is bankrupt, so why is CEL price up 4,000% in two months?
Crypto lending platform Celsius Network has an approximately $1.2 billion gap in its balance sheet, with most liabilities owed to its users. In addition, the firm has filed for bankruptcy protection, so its future looks bleak.
Still, Celsius Network's native utility token CEL has soared in valuation by over 4,100% in the last two months, reaching around $3.93 on Aug. 13 compared to its mid-June bottom of $0.093.
In comparison, top coins Bitcoin (BTC) and Ether (ETH) rallied 40% and 130% in the same period.
Technically, the price rally made CEL an excessively valued token in early August when its relative strength index (RSI) crossed above the 70 threshold.
Takeover rumors appear to be behind CEL's upside strength. Notably, Ripple wants to purchase Celsius Network's assets, according to an anonymous source cited by Reuters on Aug. 10.
Reuters reported that Ripple is interested in Celsius assets but there's no confirmation yet from either companies. Celsius has halted withdrawals from the platform since June and has filed for Chapter 11 bankruptcy which will enable them gradually payback what they owe.
CEL's price more than doubled after the piece of news hit the wire.
In July, rumors also surfaced about Goldman Sachs' intention to acquire Celsius Network for $2 billion. CEL was changing hands for as low as $0.39 around that time.
An army of retail traders also appears to be behind the CEL's giant upside push in the last two months.
Some traders have organized a short squeeze to limit CEL's downside prospects. A short squeeze is when an asset's price rises suddenly, forcing short sellers to buy back the asset at a higher price to close their positions.
Bitcoin & Celsius UpdateBTC is very choppy so my focus is on altcoins & CEL. I'd
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