The Celo price bullish rally accelerated as the demand for its token jumped. CELO jumped by more than 33% in the past 24 hours, pushing it to the highest level since September 5. The platform has a market capitalization of more than $1.85 billion, making it the 68th biggest coin in the world.
What is Celo and how does it work?
Celo is a blockchain-enabled fintech platform created by the Celo Foundation. The platform is backed by some of the leading venture capital firms in the US like Polychain, Jack Dorsey, Reid Hoffman, Social Capital, General Catalyst, and T-Mobile.
Celo’s goal is to simplify payments by creating a mobile-first payment platform that is powered by blockchain. This blockchain is based on a proof-of-stake stack. The three key parts of the network are the Celo Platform, its native toke known as CELO, and the stable value asset known as cUSD.
The Celo platform makes DeFi tools and services available to anyone with a mobile device like a smartphone or a tablet. CELO, on the other hand, is the native token for the ecosystem, serving as the primary asset in the stability mechanism. cUSD is a stablecoin that tracks the US dollar.
The CELO price is rising as activity in the network increases. The network has handled more than 24 million transactions with the average bloc time being about 5 seconds. At the same time, the number of accounts in the network has grown exponentially.
CELO price forecast
The four-hour chart shows that the CELO crypto price soared to a high of $10.30 in August. This was a 400% increase from the lowest level in July. The coin then erased most of these gains and dropped to $3.82 during this week’s crypto sell-off. Now, it has moved substantially higher and is trading at $6.
Along the way, CELO has moved above the 25-day and 50-day moving averages (MA). It is also approaching the key resistance at $6.4 and has formed what looks like an inverted head and shoulders pattern.
Therefore, I suspect that this performance will attract more traders, which will push the price substantially higher. If this happens, the next key level to watch will be at $8, which is about 33% above the current level. On the flip side, a drop below the key support at $5 will invalidate this view.