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On Tuesday, the Celsius (CEL) rate first collapsed by 17%, and then launched a rally and rose by 17%. Probably, behind these price jumps there were the latest news about the project.
For the last couple of days, the Celsius project coin (CEL) has shown increased volatility. It first fell 12% in response to reports that Alex Mashinsky, CEO of bankrupt crypto lender Celsius Network, had resigned as part of a Chapter 11 bankruptcy filing in New York State.
However, just a few hours later, the price unexpectedly soared by almost 17% on rumors that billionaire and FTX CEO Sam Bankman-Fried is going to buy the assets of Celsius Network. Recall that earlier his exchange has already become one of the main buyers of financial debts of another bankrupt – Voyager Digital.
CEL bearish breakout coming?
Since June 13, the CEL rate has been growing along the ascending support line. On August 7, the pace of this growth accelerated, and on August 13, the price reached a maximum of $4.63.
At the time, it looked like the market had made a bullish breakout of the $2.10 resistance area.
However, the bulls failed to consolidate this breakout and the coin soon pulled back, retesting the $2.10 area as resistance (red icon). As a result, a very long upper wick appeared on the chart, which is considered a sign of selling pressure.
Now the CEL rate is trading near the ascending support line. Its breakthrough may cause renewal of annual lows.
A bearish breakout of this line appears to be the most likely scenario, given the price rebound from the aforementioned resistance, as well as the decline of the RSI below 50.
Source: Trading View
Short term timeframes
On the shorter 15-minute chart, the situation looks less clear. Sharp price fluctuations in both directions led to the formation of long wicks. This does not allow any particular pattern to be singled out. However, it is possible that the price is now trading inside an expanding wedge pattern, which is considered a bearish signal.
However, the 15-minute RSI is holding directly in the 50 area. This is a sign of a neutral trend. In addition, the price is approaching the point of convergence of the wedge support line and the $1.55 resistance area.
Thus, the further direction of the trend may depend on whether the CEL makes a bearish breakout of this support line or breaks above the $1.55 area.
Source: Trading View
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