Celsius (CEL) rallies 360% following massive token burn

Overview of CEL Token Burn and Price Surge

The CEL token of the now-defunct Celsius Network experienced a significant price surge following a massive token burn. Data reveals that Celsius burned over 94% of its total supply on April 30, reducing the number of tokens from 695.65 million to 40.55 million CEL. This move resulted in a price increase of 360% over the past week, with CEL trading at $0.94 at the time of writing.

Current Market Cap and Trading Volume of CEL

At present, the total market cap of Celsius stands at $38.2 million, with a daily trading volume of $78 million. The Relative Strength Index (RSI) for CEL has surged from 82 to 89 in the last 24 hours, indicating that the asset may be overvalued at its current price. Additionally, the open interest for CEL has increased by 69% in the same period, potentially leading to higher price volatility.

Potential Implications of Increased Open Interest

Despite the positive price trend, Celsius’s total funding rate remains slightly negative at -0.004%. This suggests that traders betting against CEL’s price increase are dominating long-position holders. Given the heightened RSI and open interest levels, CEL is currently experiencing high volatility, raising the possibility of a price correction in the near future.

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