CEL dawdles further as Celsius commences the sale of its altcoins
- Celsius has kicked off the sale of its altcoins.
- CEL has been plagued by a significant rally in selling pressure.
Notice that #Celsius started selling altcoins.
— Lookonchain (@lookonchain) July 17, 2023
According to Lookokchain, Celsius transferred 1.27 million LINK ($8.5 million), 2.83 million SNX ($7.84 million), 12,597 BNB ($3 million), 4.45m 1INCH ($2.26 million), 8.53 million ZRX ($1.9 million), and 439,000 FTX ($713,000) to FalconX. They also deposited 186,149 BONE ($235,000) into OKEx. This brought the total value of the altcoins that Celsius has sold to $23.2 million.
Read Celsius Network’s [CEL] Price Prediction 2023-2024
The altcoins sale comes after the insolvent lender received approval from the U.S. Bankruptcy Court in New York to do the same. According to the 1 July ruling:
“In compliance with paragraph 4 of the Cash Management Order and this Stipulation and Order, the Debtors, in consultation with the advisors to the Committee, may sell or convert any non-BTC and non-ETH cryptocurrency, crypto tokens, or other cryptocurrency assets other than such tokens that are associated with Withhold or Custody accounts (collectively, the “Altcoins”) to BTC or ETH commencing on or after July 1, 2023.”
As of press time, Celsius still had some altcoin holdings, which it was yet to send to exchanges for onward sale.
Their remaining altcoin holdings include:
and others pic.twitter.com/oWNnMuTMCt
— Tom Wan (@tomwanhh) July 17, 2023
CEL has a troubled future ahead of it
According to a recent report by Kaiko, market liquidity for the CEL token has depleted severely since its bankruptcy proceedings began. According to the on-chain research firm:
“There is virtually no liquidity for CEL as measured by market depth, which has collapsed to just $30k, concentrated mostly on OKX and Bybit.”
With no liquidity to shore up the alt’s value, CEL distribution has intensified in the last few months. Exchanging hands at $0.17 at press time, CEL’s price declined by 73% in the last 180 days, per data from CoinMarketCap.
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The downtrend positions of key momentum indicators on the daily chart confirmed the increased CEL sales in the past few months. For example, the alt’s Relative Strength Index rested below the 50-neutral line at 46.02. Inching closer to the oversold territory, CEL’s Money Flow Index (MFI) was 38.12 at press time.
Lastly, its Chaikin Money Flow returned -0.48 at press time. Deep in the negative territory, liquidity exit from CEL market continued to climb.