On June 14, discussions of Celsius continued to populate media headlines and June 14’s information concerned the platform’s CEL token accruing large beneficial properties after what seems to have been both an change glitch or a short-squeeze. CEL value spiked from $0.18  to $1.55 in a single abrupt candle earlier than sinking again to $0.60 throughout the identical one-hour candle.

CEL/USDT 1-day chart. Supply: TradingView

At present, analysts are on the fence in regards to the motive for the explosive value breakout. Some cite Celsius repaying a portion of its money owed as a motive, whereas others pinpoint a attainable error on the FTX change as the explanation for what seems to be a brief squeeze.

Are debt repayments boosting investor confidence?

Celsius has been scrambling to cowl a variety of its money owed and it’s attainable that some traders view this as an indication that the platform will be capable of survive the present mayhem. 

Twitter analyst Hsaka mentioned that on-chain knowledge reveals that the $28 million in Dai (DAI) that was lately deposited right into a pockets managed by Celsius and has since been despatched to a separate handle, which he identified as a debt compensation handle.

Celsius pockets transactions. Supply: Twitter

Analysts imagine that the Celsius’s technique is to decrease its liquidation value within the MakerDAO vaults  the place it holds funds and finally keep away from insolvency.

Person interface issues on FTX

Whereas the start of debt compensation may need helped encourage extra confidence in Celsius, a number of crypto merchants reported points when attempting to purchase and promote the token on FTX change.

A number of replies to the tweet above confirmed person difficulties when attempting to promote CEL on FTX, and Twitter person Karl Larsen said that they “may solely fill my shorts at 0.87–0.95.”

The likelihood that the difficulties with the person interface on FTX performed an element in CEL’s fast spike was additionally noted by analytics supplier TheKingFisher, who posted the next chart highlighting when the person interface went down in relation to when CEL value pumped.

CEL/USD value. Supply: Twitter

In keeping with TheKingfisher, when the UX went down, “most merchants [were] unable to hedge, shut [or] scale back their positions.”

The agency mentioned,

“Spot market went above $2 to interrupt index and set off liquidations on objective. That is a spot manipulation to liquidate merchants. Index being calculated on FTX itself. This isn’t outdoors of their boundary in opposition to fraud [to] maintain the market organized.”

Associated: Nexo presents to purchase out Celsius’ loans amid withdrawal suspension

It is simply one other brief squeeze

Some analysts say the worth breakout was nothing greater than an old school brief squeeze, as famous by Saleem Lala.

It stays to be seen what occurs with the worth of CEL transferring ahead, and it appears the most probably perpetrator was a cascading liquidation as a result of these kinds of occasions are comparatively frequent throughout sturdy market volatility. For instance, Chain (XCN) token underwent an identical occasion on June 14 as its value dropped 95% resulting from cascading liquidations.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your personal analysis when making a choice.