The Celo price is crawling back a few days after it crashed to the lowest level since July 2021. It is now trading at $2.91, which is about 41% below the lowest level this year. As a result, the total market cap has moved to about $1.2 billion, making it the 81st biggest coin in the world.
What is Celo and why is it rebounding?
Celo is a relatively small layer 1 project that seeks to be a good platform for developers to build quality mobile-ready applications. The platform is backed by some of the best-known brands in venture capital like Polychain, a16z, Social Capital, and Coinbase among others.
Celo has also created an alliance of leading companies and organizations like MoonPay, El Dorado, OkCoin, Opera, and Paxful among others.
In the past few months, Celo’s ecosystem has been in a strong growth path. For example, the number of apps using the network has risen. They include apps like Anchorage Digital, Valora, NomSpace, Fireblocks, and Ubeswap among others. T-Mobile has also used the network to build apps.
According to DeFi Llama, Celo has been used to build decentralized finance applications. Some of the leading DeFI apps in the ecosystem are Mento, Moola Market, and Mobius Money. In total, these apps have a total value locked (TVL) of more than $435 million.
At the same time, Celo has been used to build stablecoins. For example, it was used to build Celo Dollar, which is a stablecoin backed by the greenback that has a valuation of about $85 million. Other stablecoins in the network are cEuro and cReal. These stablecoins are significantly smaller than the popular ones like Tether and USD Coin.
Celo price prediction
The CELO price crashed to a low of $2.10, which was the lowest level since July 20th. Since then, the coin has made a cautious recovery and moved slightly above the 25-day moving average while the Relative Strength Index (RSI) has moved upwards.
Still, this bullish comeback seems like it is not strong enough. Therefore, there is a likelihood that it will resume the bearish trend in the coming days. If this happens, the next key support to watch will be at $2.10. A break below this support will see it continue falling in the near term to below $2.