CEL, the native token of the now-defunct Celsius Network (CEL), has recorded an impressive price surge following a massive token burn.
According to on-chain data, Chelsea burned more than 94% of its total supply on April 30, plummeting from 695.65 million CEL to 40.55 million CEL. Tokens were sent to a null address, making it the third largest transaction in Celsius history.
Since the burn trade, CEL has risen 360% over the past week. The asset is up 67% in the last 24 hours and is trading at $0.94 at the time of this writing. This level was last seen in November 2022.
Currently, the overall Celsius market capitalization is $38.2 million, with daily trading volume of $78 million.
According to data provided by Santiment, the CEL Relative Strength Index (RSI) has surged from 82 to 89 in the last 24 hours. This indicator shows that Celsius is currently overvalued and overheated at this price range.
Moreover, according to Santiment, Chelsea’s total open interest increased 69% from $7.91 million to $13.39 million in the last 24 hours. A sudden surge in CEL open interest could potentially increase the price volatility of the asset as liquidations are likely to increase.
Despite the surge in prices, Chelsea’s total funding ratio is hovering around minus 0.004% at the time of reporting, according to data from the market intelligence platform. Simply put, traders betting on a price increase in CEL have a slight dominance over long position holders.
Due to rising RSI and open interest, CEL is hovering in a highly volatile zone and a sharp price drop could potentially be in the works.