Celsius Network prices rebounded on Friday following an update on the company’s bankruptcy proceedings. The CEL token price surged to a high of $1.6835, its highest level since Aug. 24 and up more than 100% from its lowest level in August.
Why is CEL going up?
CEL is the native token of Nexo competitor Celsius Network, which filed for voluntary bankruptcy in June this year. At its peak, the company had billions of dollars in customer deposits, the largest in the crypto industry One of the success stories.
In May, the company announced that it would suspend deposits and withdrawals as the prices of most tokens plummeted. CEL tokens surged on Friday after the company asked the judge overseeing the case to allow $50 million to be released to customers.
These funds are held in the company’s escrow account, which is designed to store digital assets. The matter will be heard on October 6 this year, the judge said in a statement. Still, the funds are a small fraction of the more than $200 million stranded in the company’s escrow accounts.
Meanwhile, the company still owes customers more than $4.2 billion in assets in the company’s profitable accounts. So while some companies are trying to acquire it, the company’s future remains in doubt.
Celsius Network price increases as a result. For a thinly traded asset like CEL, any good news usually gets the attention of day traders. This explains why the price of the coin is going parabolic. This also explains why the price of VGX is rising. VGX, the native token of Voyager Digital, also filed for bankruptcy.
Celsius Network Price Prediction
The four-hour chart shows that CEL price has been in a strong bullish trend over the past few days. It rose to a high of $1.5810, the June 21 high. As it rallied, it was just above its 25-day and 50-day moving averages, while the Relative Strength Index (RSI) was near its overbought levels.
Therefore, Celsius Network price may resume its bearish trend as the hype surrounding the $50M return subsides. If this happens, the coin could retest the important support at $1.06.