- Celsius price has plummeted by over 60% from the month-to-date high.
- Goldman Sachs is said to be eying the company's assets.
- The CEL token seems ripe for a 35% dip to $0.50.
Celsius price has struggled in the past few days as investors watch the ongoing restructuring by the parent company. CEL, its native token, is trading at $0.80, which is about 70% below its highest level this month. Its market cap has dropped to about $336 million.
Goldman Sachs eying Celsius
At its peak, Celsius Network was one of the biggest companies in the blockchain industry. By May this year, the company had more than 1.7 million customers and over $11 billion in assets.
Celsius is a company that is significantly similar to Nexo and BlockFi. It enables costumers to buy cryptocurrencies and invest in coins with the goal of earning a profit. It is possible to earn an APY of as much as 20%, which is significantly higher than what other assets earn. This is particularly so in a period of significantly low interest rates.
Celsius has other services. In its platform, individuals can borrow funds, pay for goods and services and swap cryptocurrencies instantly. Most importantly, the company has an insurance policy of over $750 million and has won several awards.
Learn more on how to buy Celsius.
Celsius has made headlines recently after the company announced that it was halting withdrawals from its platform. This happened as the crypto industry turned extremely bearish, with the total market cap of all cryptocurrencies falling from over $3 trillion to less than $1 trillion.
A lot has happened since the initial announcement. The company hired restructuring experts from Alvarez & Marsal to advise on the way forward. And last Friday, it was reported that Goldman Sachs was interested in the company. The firm is now soliciting about $2 billion from investors to acquire the company’s assets at a big discount if the firm manages to file for bankruptcy. It is still unclear whether Goldman will find enough funds to execute the deal.
Celsius price prediction
The four-hour chart shows that the CEL price has been in a strong bearish trend in the past few days. The 25-period and 50-period moving averages have made a bearish crossover pattern. This is usually a bearish sign. It has also dropped below the important support level at $0.9765 while the RSI has been moving downwards.
Therefore, there is a likelihood that the Celsius price will continue falling as bears target the key support at $0.50, which is about 35% below the current level. This view is in line with my recent Celsius forecast.
Contributors
