SEI Price Surge: Short Squeeze Incoming?
SEI Network: Soaring User Activity and Price Action
The Sei Network (SEI) is experiencing a significant surge in user activity, potentially signaling a short squeeze as the price approaches $0.35. Daily Active Wallets increased by 10.49% to 561,000, while Daily Transactions jumped 20.13% to 1.47 million. This acceleration phase, building since early Q2, has pushed SEI to $0.3039.
Increased Social Momentum
Santiment data reveals a notable increase in SEI's social dominance (reaching 0.59% before settling at 0.387%) and positive sentiment (surpassing 14 on June 27th). This heightened visibility suggests growing broader interest, likely fueled by community support and media attention. While this increased social buzz often precedes breakouts, it can also attract speculative trading.
Source: Santiment
Contrarian Trader Positioning
Despite the positive on-chain metrics and sentiment, Funding Rates remain negative (-0.032% at press time), indicating a significant short position. This reluctance among derivatives traders to fully embrace the rally could fuel a short squeeze if the price continues to rise and triggers liquidations.
Source: Santiment
Open Interest and Speculative Capital
Open Interest has risen by 7.78% to $310.87 million, suggesting a return of speculative capital into SEI. This increase, alongside price movement, typically signals growing market confidence, with both bulls and bears preparing for the next price shift. The key will be watching whether this inflow continues as SEI approaches resistance levels.
Source: CoinGlass
$0.35: The Next Crucial Level
SEI has broken out of a prolonged descending channel, reaching approximately $0.3039 and nearing the key resistance at $0.3508. The Relative Strength Index (RSI) currently sits at 67.89, indicating bullish momentum but not overbought conditions. A sustained break above $0.35 could trigger a new phase of price discovery. Failure to breach this resistance might lead to price consolidation or a retest of the breakout level.
Source: TradingView
Conclusion
SEI's recent price surge is underpinned by strong user activity, increased speculative interest, and positive sentiment. However, negative funding rates and the $0.35 resistance level present short-term risks. Maintaining momentum and breaking above $0.35 would likely propel SEI into a new phase of price discovery.
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