CELO’s Nightfall Testnet sparks a major breakout | Credit: Hameem Sarwar
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Key Takeaways
CELO surges 85%, breaks resistance as bullish momentum strengthens.
Nightfall Testnet launch boosts holders’ confidence amid the surge.
Data suggests that a short squeeze may propel CELO’s price toward its $1 target.
CELO, the native coin of the carbon-negative blockchain designed for financial inclusion, has reached its highest level since February 14. This development occurred after CELO’s price increased by nearly 85% over the last seven days.
At press time, CELO trades at $0.46, with signs that October could add a fresh wave of buying pressure. But the recent rally seems to be more than just demand.
Here is what led to the spike in CELO’s price to an eight-month high and what lies ahead for its price.
Celo Surges to February Highs
The CELO/USD 4-hour chart shows that the altcoin began printing higher highs as the new month kicked off.
Before this breakout, CELO had been trapped inside a descending channel, where repeated rejections along the upper trendline kept the price from gaining momentum.
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However, rising demand finally tipped the balance in favor of the bulls. This propelled CELO’s price above the channel’s resistance line, confirming a trend reversal.
As shown below, the +DMI (green) sits at 45.86, far above the –DMI (red) at 8.47, signaling that buyers are firmly in control. Meanwhile, the Average Directional Index (ADX) stands at a strong 65.40.
With such powerful directional momentum, CELO’s rally looks far from over. Therefore, if the current buying pressure persists, the cryptocurrency could be poised for another leg higher in the short term.
Another key catalyst behind CELO’s recent surge appears to be the launch of the Nightfall Testnet.
On Oct. 1, during the ongoing Token2049 conference in Singapore, Celo announced that the Testnet had officially gone live.
For context, Nightfall is a Layer 3 privacy and scalability solution designed to enhance transaction confidentiality across the Celo ecosystem.
It introduces zero-knowledge privacy features that allow users and enterprises to execute secure, private transactions while maintaining the network’s efficiency.
This move positions Celo as one of the few chains actively integrating privacy with scalability. This combination, many analysts believe, will be crucial for the next phase of blockchain adoption.
“With this Layer 3, Celo now offers a comprehensive solution for both individual and institutional payment needs in markets underserved by traditional financial infrastructure,” Rene Reinsberg, Celo Co-Founder said about the development.
CELO Shorts Get Squeezed Out
Amid this development, CELO’s funding rate has turned extremely harmful — an intriguing divergence given the cryptocurrency’s price surge.
Typically, a negative funding rate indicates that short positions outweigh longs, meaning many traders are betting on a price decline.
However, when this occurs while the price rises, it signals that bearish traders are being squeezed out.
In other words, the crowd’s skepticism may fuel CELO’s price to trade higher. If this negative funding rate persists while the price holds above key support, a short squeeze could drive another explosive move toward new highs.
CELO Price Prediction: Bullish
Examining the daily chart, the CELO coin continues to display bullish signals. The altcoin has risen above a significant resistance line, showing strength after weeks of consolidation.
At the same time, the Chaikin Money Flow (CMF) has climbed above the zero signal line, currently sitting at 0.17, which highlights a steady increase in capital inflows.
Supporting this, the Awesome Oscillator (AO) has turned positive, reinforcing the bullish momentum.
If this trend holds, CELO’s price could break through the $0.55 resistance. A successful breakout above that level would likely pave the way for $0.64, with further momentum potentially propelling the token toward the psychological $1 mark.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
