Celsius: Analysis of the SEL situation after the events of Alameda and FTX

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Celsius network after the FTX problem

  • Celsius Network has confirmed its exposure to FTX trading and exchange company Alameda Research
  • Negative sentiment continues behind CEL as investors believe prices will fall further

Now-collapsed crypto lender Celsius Network [CEL] confirmed in a tweet on Nov. 11 its exposure to FTX exchange and trading firm Alameda Research. This happened after both units declared bankruptcy on the same day. 



Celsius claims that he has around 3.5 million Serum [SRM] tokens in FTX, "most of which are locked up." Additionally, he has provided loans totaling $13 million for Alameda's research, which he says is "currently unsecured (mostly in FTT tokens)."

Celsius Price action

CEL is no stranger to severe price drops, and this week was no different for the abandoned crypto asset. 

Earlier in the week, when the FTX crash began, CEL was trading at $1.01, data from CoinMarketCap reveals. Down 43% over the past five days, CEL trades at $0.586 at press time. 

After experiencing a bull run in the last 10 days of October and the first 7 days of November, the overall market downturn caused by the FTX crash caused CEL to start a new bear cycle on Nov. 

On the daily chart, the asset's moving average convergence divergence (MACD) crossed the trendline during a downtrend on Nov. 8. Additionally, the increase in liquidity also caused its price to drop. strong.

At press time, CEL is oversold. Its Relative Strength Index (RSI) is at 30.39 and its Money Flow Index (MFI) is positioned in a downtrend at 44.68. This shows that sellers are in control of the market. The 20 EMA is below the 50 EMA (yellow), showing the severity of the ongoing bearish action.

Also, the Chaikin Money Flow (CMF) dynamic line (in green) is -0.285 and has been falling since Nov. 7. This means that the CEL distribution has been growing steadily since the beginning of the week. 

Source: TradingView

CEL Onchain

Data from Santiment 's on-chain analysis further suggests that the trading week has been particularly bearish for CEL. 

First, with 10.8 million CEL tokens on exchanges at press time, the supply of CEL tokens on exchanges has recovered over the past five days and is up 5% since 7. This shows that holders distributed their CEL holdings shortly after the FTX event started. 

In contrast, the supply of forex CELs decreased during the same period, indicating that buying pressure has eased during the trading week.

Source: Emotions

CEL's network performance assessment during the review period showed a decrease in the number of daily active addresses and the number of new addresses joining the network.

Over the past five days, the number of unique addresses trading CEL daily has dropped 74.5% as the market grapples with the disaster of FTX. During the same period, Everbright Networks' network growth slowed to 55.5% and new demand declined.

Meanwhile, the bullish sentiment remains negative as there is little confidence in the positive price growth.

Source: Emotions


Nov 13, 2022

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