Celsius Network's native token, CEL, experienced an impressive 370% surge in value within just one week, defying the general market downturn. This remarkable price increase was primarily fueled by a combination of token burning, a breakout, and increased activity in the derivatives market.

The recent surge in the price of CEL, the native token of Celsius Network, has captured significant attention within the wider cryptocurrency sector, with a striking 370% price surge recorded over the past week. This surge, largely attributed to a substantial recent token burn, has been bolstered by other positive market indicators, fostering a sense of optimism surrounding the token.

A closer examination of the factors behind CEL's recent remarkable price surge and its current price dynamics reveals intriguing insights.

Celsius Network Executes a Massive Token Burn

Reports from the global cryptocurrency landscape reveal that Celsius Network executed a significant token burn on April 30, eliminating a staggering 652.2 million CEL tokens by transferring them to a null address. This substantial reduction in the token supply, amounting to 94% of the total CEL supply, has generated considerable bullish sentiment towards the token.

Following this extensive token burn, the total supply of CEL, previously at 692.8 million tokens, plummeted to 40.6 million CEL, triggering a surge in price. This price rally gained momentum steadily, resulting in a substantial 370% increase in value for the token over the course of a week.

It is noteworthy that this extensive burn was part of the company's strategic restructuring efforts.

What distinguishes Celsius' price surge is its resilience against prevailing market trends. Despite heightened market volatility, on-chain data highlights CEL's bullish trajectory, indicating an upward market trend and enhancing the token's appeal to participants in the cryptocurrency market.

CEL Price Performance & Derivatives Activity

At present, the price of Celsius has surged by 40.10% in the last 24 hours, reaching $0.7185. The token's market capitalization has also increased by 40.10%, accompanied by a 14.48% rise in 24-hour trading volume.

Data from Coinglass reveals a 72.01% surge in CEL futures open interest, totaling $13.69 million, while derivatives trading volume spiked by 26.62% to $319.09 million. These figures underscore a growing market trend, potentially driven by heightened investor interest and increased trading activity in the token's derivatives market.

Meanwhile, the Relative Strength Index (RSI) hovers around 80, indicating that the asset is in overbought territory. This suggests a possible price correction or pullback, given the rapid price increase.

Technical indicators signal a strong buying sentiment for the token, hinting at a potential short-term price surge if buying pressure persists. However, the RSI poses uncertainty regarding the token's long-term price trajectory, adding a layer of complexity to its future movements.