Celsius Network is bankrupt, so why has the price of CEL increased by 4000% in two months?

Takeover rumors and an ongoing short-term squeeze are helping CEL's price rally, but are there any enough momentum for more upside?

Altcoin Watch

Crypto lending platform Celsius Network has a deficit of around $1.2 billion on its balance sheet, with most of the debt owed to its users. In addition, the company has filed for bankruptcy, so its future looks bleak.

Yet Celsius Network's CEL native utility token has soared over 4,100% in the past two months, hitting around $3.93 on August 13 from its mid-June low from $0.093.

In comparison, major coins Bitcoin (BTC) and Ether (ETH) are up 40% and 130% over the same period.

CEL/USD daily price chart. Source: TradingView

Takeover Rumors Behind CEL Explosion?

Technically, rising prices made CEL an overvalued token in early August when its Relative Strength Index (RSI) broke above the 70 threshold.

Takeover rumors appear to be behind CEL's bullish strength. Notably, Ripple wants to buy the assets of Celsius Network, according to an unnamed source quoted by Reuters on August 10.