Key Takeaways
- SEI’s surge was driven by retail demand, rising DEX and derivatives volume, and bullish sentiment. Technical indicators show strong momentum, but resistance at $0.36 could trigger profit-taking and a pullback.
At press time, Sei [SEI] rallied 23.94% in 24 hours, after successfully defending the $0.25 support level, and reached a local high of $0.333.
With these gains, the altcoin sheds off previous losses, hiking approximately 56% over the last 30 days. But, is this the start of a more sustained uptrend or a mere speculative bubble?
SEI buyers take the lead
Before its recent price surge, SEI struggled to attract organic demand from smaller investors. However, sentiment among retail traders has shifted noticeably over the past day.
According to Coinalyze, SEI recorded 97.7 million in Buy Volume versus 91.14 million in Sell Volume at press time.
The previous day showed a similar trend, with 189.58 million in buys and 184.9 million in sells—highlighting growing interest from retail buyers.
Source: Coinalyze
As a result, the market recorded two consecutive days of a positive Buy-Sell Delta of 6.56 million and 4.68 million, respectively.
Besides rising buy volume, SEI’s DEX Volume surged to $56.71 million, at the time of writing.
Typically, a DEX is widely used by retail traders and DeFi participants.
Source: DeFiLlama
Therefore, a spike in DEX’s Volume signals that investors are chasing recent gains. As such, there’s increased capital rotation into the SEI network as more wallets continually swap into it.
Derivatives eyeing more gains
Notably, when we examine the derivatives market, we find that investors entering the market are doing so by taking futures positions.
In fact, according to CoinGlass, SEI’s Open Interest (OI) increased by 34% to $368.48 million, while Derivatives Volume rose by 157.14% to $1.23 billion.
Source: CoinGlass
Usually, such a surge in OI alongside rising prices reflects strong fresh capital inflow as investors enter to chase recent gains. Such market behavior shows strong bullish sentiment.
Unsurprisingly, these bullish sentiments in the futures are confirmed by a positive funding rate. At press time, this metric stood at 0.01, while the Long Short Ratio was 1.01, indicating strong demand for long positions.
Source: Santiment
Typically, a surge in demand for longs implies that investors are actively betting on prices to continue rising.
A rally or just a fluke?
According to AMBCrypto’s analysis, SEI saw a substantial upsurge as retail investors returned to chase the rally.
As a result, the altcoin’s Relative Strength Index (RSI) surged to 69, reflecting sustained buying pressure.
Source: TradingView
Likewise, SEI’s Directional Movement Index (DMI) surged from 28 to 39, edging towards a bullish crossover. If +DI flips -DI, which currently also sits at 39, it will validate the uptrend and confirm buyer dominance.
In such a case, it would mean that buyers have continued to accumulate the altcoin. If they do so, the altcoin will attempt to reach the $0.36 resistance level.
However, if holders take this price hike as a profit-realizing opportunity, downward pressure will emerge, resulting in a pullback to $0.29.
