Key Notes
- CEL jumped to $0.139 before sliding back to $0.103, marking a 13% daily drop.
- The sell-off coincided with Mashinsky’s legal team condemning the DOJ’s 20-year sentence request.
- Uncertainty around Celsius continues to weigh on the token’s price momentum.
After a major increase on Monday that saw Celsius (CEL) skyrocket 50% from $0.087 to $0.139, the token has now sharply corrected. At the time of writing, the cryptocurrency is trading around $0.103, down by over 13% in the past day.
The downturn follows fresh updates surrounding Celsius Network’s disgraced founder, Alex Mashinsky. On May 5, Mashinsky’s legal team lashed out at the U.S. Department of Justice’s request for a 20-year prison sentence, calling it a “death-in-prison sentence” for the 59-year-old.
Mashinsky’s attorneys argue that the government is overstating the case, pointing to his nonviolent history and long-standing business record. They maintain that he’s being unfairly displayed as the villain behind every Celsius misstep.
DOJ Pushes for Lengthy Sentence
Mashinsky had pleaded guilty in December 2024 to manipulating CEL’s price. He also accepted fraudulently offloading $48 million worth of tokens before Celsius collapsed in June 2022.
Mashinsky’s response comes after the DOJ labeled his actions calculated in its April 28 recommendation, suggesting a 20-year prison sentence. Prosecutors first leveled seven charges against him in July 2023.
Celsius filed for Chapter 11 bankruptcy in July 2022, leaving a $4.7 billion crater in its wake. A restructuring plan approved in November 2023 led to partial repayments, with $2.53 billion distributed to over 250,000 creditors as of August 2024.
CEL Price Outlook
Despite CEL’s recent rally, X data shows that many traders are cautious due to its scandal-ridden past and volatile price action. Notably, the token is currently down nearly 99% from its 2021 all-time high of $8.02.
On the daily CEL price chart, the RSI hovers near 57, gradually moving toward overbought territory after its recent spike. A rise in RSI with sustained trading volume could lead the token to retest $0.139 again.
CEL price chart with Bollinger bands and RSI | Source: Trading View
The Bollinger Bands have widened slightly, with price now retreating from the upper band, a sign of a short-term cooldown. $0.087 acts as crucial support for CEL and a drop below this could send the token back into prolonged bearish consolidation.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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