CELO was among the few cryptocurrencies that posted gains in the last 24 hours.
The 34th-largest crypto token surged by 30 percent to hit $4.60, its highest level in more than a week. Traders jumped in to the CELO market after Coinbase Pro, a US-based cryptocurrency company, listed its trading instruments on its trading platform.
Coinbase said in its Thursday blog post that its customers can now buy, sell, convert, send, receive, or store CGLD (it is the same ticker as CELO) across all its supported regions. The announcement opened a fiat-liquidity gateway for CELO traders – they will now be able to exchange the token for currencies like the US dollar, Euro, and Pound.
CELO/USDT started rising right after Coinbase’s listing. The jump also came as the rest of the cryptocurrency market showed signs of a weakening bullish momentum. So it appears, traders believed hedging into the token on its short-term optimistic fundamentals might de-risk their portfolios from other assets.
But technically, increasing exposure in the CELO market looked like a part of traders’ previous choppy sentiment.
CELO/USDT is trading sideways. Source: TradingView.com
The chart above shows a pattern whereby traders are buying CELO tokens near the lower blue support level. Meanwhile, they are selling them at or below the upper resistance level. The CELO/USDT, more or less, has trended sideways in the said range so far.
On Friday, the pair again tested the resistance at $4.62 before correcting lower on higher selling sentiment. It may likely extend its correction towards $3.70 in the coming session, given traders continue selling the token below its 50-hour moving average – an intermediary support level.
Apart from the Coinbase listing, CELO remains a fundamentally-strong asset. It serves as a utility and governance token for the Celo platform. The core purpose of this service is to make it easy for anyone with a smartphone to send, receive, and store stablecoins without needing a wallet.
So far, the platform has attracted investments from Coinbase Ventures, a16z, and Polychain. The involvement of prominent venture firms into the project has also played a key role in raising bids for CELO token, especially among traders and investors with a long-term market strategy.
It is up 185 percent on a year-to-date timeframe due to the same speculation.