Markets

CELR price grid is targeting the $0.30 resistance

Celer Network (CELR) price jumped 30% on April 16 as markets reacted to new community initiatives and product launches. Increased daily traction and a sharp rise in whale trading activity appear to be major drivers of the current price hike. Can the bulls run for $0.35?

Celer Network is a unique blockchain protocol that enables developers to create DeFi, GameFi, NFT or governance projects optimized for interoperability and liquidity efficiency. On April 13, the team announced expanded coverage of its zkSync ecosystem.

With users now able to connect to smart contract-based alternatives such as BNB, MATIC, and AVAX, it is no surprise that multiple on-chain data flashed green signals for CELR price hikes in the past week.

Seller Network is seeing an increase in user engagement

The recent spike in prices recorded on CELR coincides with a similar increase in the number of users engaged on the network. After a slow start in April, the number of daily active users on the Seller network has increased by nearly 150% in the past two weeks.

Daily Active Users (DAU) measures the number of unique addresses interacting on a blockchain network. The Santiment chart below shows how the CELR DAU increased from 76 on April 5 to 187 titles on April 19.

9.

CELR price for daily active addresses. April 2023 Source: Emotion

When more users use a network, it indicates an increase in the demand for basic services of the network. This increased demand can also attract more investors and traders, leading to a positive feedback loop of demand and adoption.

Hence, if Celer Network can sustain the current bullish trend in user interaction, investors can expect CELR prices to rise for a long time.

Seller whales became trapped

Likewise, CELR appears to be catching the eye of large institutional investors again. After recording just one transaction of at least $100,000 in the first 10 days of April, CELR transactions for whales have rebounded in the past week.

The Santiment chart above shows how whales have frantically increased their bets on CELR since April 11th. It recorded 14 whale transactions on Celer Network on April 19, the first time it has recorded double digits since January.

CELR price for daily active addresses.  April 2023.
CELR price for daily active addresses. April 2023 Source: Emotion

In general, an increase in whale trading is a positive sign for the cryptocurrency price outlook. It indicates increased interest from large investors and could lead to increased demand.

Also, increasing whale transactions provide higher market liquidity, making it easier for traders to buy and sell CELR. If the trend is maintained, this could lead to a more stable price over time as the market becomes less susceptible to large fluctuations.

CELR Price Prediction: Will the $0.30 Resistance Cave?

With the significant bullish momentum building in the market, it looks like CELR is ready to break the $0.30 resistance. However, IntoTheBlock’s Global In/Out of Money data, 559 addresses bought 98 million CELR coins at an average price of $0.28, can look to prevent this.

If CELR breaks this level, the next resistance area is at $0.44. At this price point, 2000 addresses could take some of their 245 million token holdings.

GIOM Seller Network price distribution.  April 2023. Source: IntoTheBlock
GIOM Seller Network price distribution. April 2023 Source: IntoTheBlock

However, things could take a bearish turn if CELR loses the current support level around $0.25. But 930 addresses containing 3.4 billion CELR tokens with an average price of $0.25 could support the price.

If this line of defense caves in, there is a stronger support level at $0.20, which is the average price 691 million CELR paid by 1,600 addresses.

Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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