- SEI is likely to break out past the two-month range and accelerate beyond $0.3
- Futures market data showed there was potential for a short squeeze and high volatility
Sei [SEI] has skyrocketed higher lately, gaining by 40.6% in the last 24 hours alone and 68% over the past week. This remarkable performance from the $1.5 billion market cap altcoin has vastly surpassed most tokens that were similarly sized or with a larger market cap.
In fact, the price began to bounce from the range lows after news that the Sei Network was selected by the Wyoming Stable Token Commission as a candidate blockchain for WYST. If the bullish sentiment persists, a range breakout can be achieved.
SEI set to blast past the $0.3 resistance?
Source: SEI/USDT on TradingView
As highlighted, the heavy buying volume and the strong, quick impulse move meant that a breakout may be likely. A daily session close above the range high at $0.275 would be an encouraging sight for the bulls.
The OBV cleared its March high, when the range high was previously retested. The hike in buying pressure could be a hugely positive sign for investors waiting for a breakout. The RSI highlighted intense bullish momentum, but did not signal a divergence that could be followed by a price dip at press time.
Over the last 24 hours, the Open Interest rose by by 71%.
This could be another sign of bullish speculative trader sentiment in the market. And yet, the funding rate remained negative. This implied that short positions have been paying the longs – A sign of bearish sentiment while underlining expectations of a bearish reversal.
Finally, the liquidation heatmap highlighted a dense pocket of liquidity at $0.29, which was swept recently. Meanwhile, the short-term local support levels at $0.27 and $0.26 saw a build-up of long liquidations. Hence, a price dip to revisit these magnetic zones may be a possibility.
The negative funding rate and expectations of a bearish reversal could induce a liquidity hunt for SEI, one that takes the price beyond $0.3. A short squeeze might be possible, but traders should be careful of volatility.
This might not be the time to FOMO into long or short positions, but rather a good time for longs to take profits. A move beyond $0.3 or a breakdown below $0.26 could set up the next price move.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
