Hundreds of billions of dollars have been wiped off the cryptocurrency market over the last two days, amidst growing concerns of a worldwide recession and US inflation reaching a 40-year high. The global crypto market capitalisation fell below $1trn and reached $916bn, a level not seen since January 2021.
Amid the gloomy crypto environment, on 13 June, Celsius (CEL), a DeFi lending platform, stated that it had halted all withdrawals, swaps, and account transfers.
Within hours of this revelation, the CEL token entered a downward spiral, plummeting from an intraday high of $0.414 to a 52-week low of 0.1554, a nearly 63% decline. At the time of writing (15 June), CEL token recovered significantly and was trading at $0.4489.
Can it recover from its collapse in mid-June 2022? This article covers the project’s fundamental and technical analysis to help you form an informative celsius price prediction.
- What is Celsius crypto (CEL)?
- CEL/USD price analysis: Will it survive the mid-June crash?
- Pause on all services and buyout offer from rival firm Nexo
- Market sentiment:
- Holdings of over 150,000 bitcoin
- Celsius price prediction: Targets for 2022, 2025 and 2030
- FAQs
- Is celsius a good investment?
- How high or low can the Celsius coin go?
- Should I invest in the celsius token?
What is Celsius crypto (CEL)?
Celsius (CEL) was founded in 2017 in London, UK, and is a one-stop destination for DeFi financing for cryptocurrency users. The platform has three critical actors:
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Lenders: Depositors who earn interest on their account balances.
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Borrowers: Traders who trade on margin and desire to get into leveraged short or long bets.
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Celsius trading platform: The platform facilitates transactions, monitors risk and establishes trading fees.
Further, the Celsius ecosystem is powered by two foundational pillars: the Celsius wallet and the Celsius token.
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Celsius Wallet: The Celsius Wallet is a cryptocurrency wallet that enables users to use their coins as collateral for loans and lend their crypto to earn interest on their deposits.
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Celsius token: The Celsius token (CEL) is the utility token for the Celsius system. It is used as a fee for borrowers of crypto assets and rewarded as interest to lenders contributing their assets. An important feature is the deployment of dollar loans using cryptocurrencies as collateral and the possibility to pay interest on these loans at a discounted rate.
Crypto asset holders can earn up to 9% interest on their loaned coins by moving them on the Celsius Network. Celsius asserts that it intends to provide a diverse range of financial solutions at competitive interest rates, ranging from one-day to one-year contracts.
Additionally, the Celsius lending protection pool safeguards Celsius Network users who lend cryptocurrency. Celsius’s protection pool ensures any defaulted loans or stolen coins can be promptly reimbursed.
CEL/USD price analysis: Will it survive the mid-June crash?
Celsius has been experiencing a bearish trend after reaching its all-time high of $8.02 in June 2021. According to CoinMarketCap’s data, as of 15 June, Celsius has returned an ROI of 216.38% since its inception, still making it a decent performer in the market.
Since the June peak in 2021, the CEL token has been trading downwards, making lower-top and lower-bottom formations. It closed the year at $4.37, down more than 45% from the all-time high.
The bearish performance continued in 2022, and the CEL token reached $2.05 on 27 January. CEL token has barely seen any bullish momentum since then.
After the mid-June collapse, triggered by Celsius’ decision to hold withdrawals, CEL token price tumbled to a 52-week low of $0.1554 on 13 June.
At the time of writing (15 June 2022), the CEL coin bounced back and was trading at $0.4489, still down more than 94% from its all-time high of $8.02, achieved on 3 June 2021 and had a market capitalisation of $114m.
Pause on all services and buyout offer from rival firm Nexo
According to a Medium post shared by the platform, the decision to pause transfers or withdrawals for an indefinite period of time was made to “stabilise liquidity” while it took steps “to preserve and protect assets”, prompting a backlash from customers fearing their funds could be lost.
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Following this revelation, several Twitter users voiced their disappointment and complained about losing access to their cash and having liquidity concerns. As a consequence, the price and the users’ short-term confidence collapsed.
I cant. I have the funds inside the app but to close loan it must be all in 1 stable and I have it in 2. So because of freeze I cant swap one of them nor deposit to close loan. Its scary stuff I dont know what to do and 10hrs to answer margin call
— m (@dosnoesuno) June 13, 2022
Meanwhile, on the same day, Nexo, a competitor in the DeFi lending market, sent a letter of intent (LOI) to acquire Celsius. Nexo declared its aim to acquire qualified Celsius assets upon what it regarded to be Celsius’ bankruptcy.
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Wu Blockchain announced on Twitter on 13 June that Celsius had transferred around 104,000 ETH to FTX over the previous three days. In addition, Celsius moved around 9,500 WBTC to FTX.
This significant asset transfer could suggest that Celsius is undergoing a liquidity challenge.
Holdings of over 150,000 bitcoin
Celsius claimed during the Bitcoin 2022 conference in April 2022 that it possessed more than 150,000 bitcoin (BTC). In addition, Celsius said that it has distributed approximately 6,100 bitcoin in rewards to its customers.
According to the report, Celsius held more bitcoin than companies such as MicroStrategy (MSTR), Tesla (TSLA), Galaxy Digital (GLXY), Block (SQ), and Coinbase (COIN).
Will the platform’s native token manage to rebound after the latest crisis? Is the project close to bankruptcy or will things return to normal? Read on for the latest celsius crypto price prediction.
Celsius price prediction: Targets for 2022, 2025 and 2030
Meanwhile, celsius traders and investors have been speculating on whether the project still has a future.
I guess Luna and Celsius will be our two sacrifices to the crypto gods for this bear market?
— Will Clemente (@WClementeIII) June 13, 2022
According to a short-term celsius technical analysis from CoinCodex, sentiment was bearish, with 23 indicators giving bearish signals and six bullish signals, as of 15 June 2022.
Most of the daily and weekly simple moving averages and exponential moving averages were giving ‘sell’ signals, along with the volume-weighted moving average (VWMA), the Hull Moving Average (HMA) and the average directional index (ADX). Still, the relative strength index (RSI) signalled a ‘buy’.
According to a short-term CEL price prediction by CoinCodex, it could decline by 22.31% to $0.440768 by 21 June 2022.
Meanwhile, several algorithm-based forecasting services gave mixed long-term celsius coin price predictions as of 15 June 2022:
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Wallet Investor estimated that the average price of CEL could continue its bearish price action to reach $0.02087 by the end of 2022 – a dip of more than 90% from its 15 June’s level if the target is hit. According to Wallet Investor’s celsius price prediction 2025, it could fall to $0.0133 by the end of 2025. The five-year CEL/USD forecast suggested it could hit $0.00655 in June 2027.
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According to DigitalCoinPrice, the celsius crypto price prediction 2022 could be more bullish. It expected celsius to hit an average of $0.71 in 2022 and $1.04 in 2025. Digital coin’s celsius price prediction 2030 indicated that CEL token price could reach $2.44 in 2030.
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Price Prediction was even more bullish, stating that the average price of CEL could hit $1.10 in 2022, $3.34 in 2025 and reach $23.36 in 2030.
When looking for celsius price prediction, remember that analysts and algorithm-based forecasters can and do get their estimates wrong. Their celsius projections are based on fundamental and technical studies of a cryptocurrency’s past performance. Past performance is no guarantee of future results.
It’s essential to do your research and always remember your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your portfolio, and how comfortable you feel about losing money. You should never trade more money than you can afford to lose.
FAQs
Is celsius a good investment?
In June 2018, Celsius (CEL) was launched as a DeFi lending platform. On June 3, 2021, the price hit an all-time high of $8.02. Since then, the CEL token has been trading in a bearish market, and it hit a 52-week low of $0.1554 on 13 June 2022.
You should conduct your own research to decide whether the token has a potential to rebound or its future is gloomy. Estimate the level of risk you are ready to take before trading. You should never trade more money than you can afford to lose.
How high or low can the Celsius coin go?
According to the CEL price prediction from Price Prediction as of 15 June, the coin could hit $39.52 by 2030. However, Wallet Investor estimated that the coin could decline to $0.00655 in June 2027.
Should I invest in the celsius token?
Due to its abrupt and unexpected service shutdown, the celsius token got a great deal of negative press and criticism over the last few days. In addition, its long-term price movement has been bearish for several months. Investing in high risk cryptocurrencies is inherently dangerous and requires considerable caution and research.
