SEI token has undergone a significant surge, attracting the attention of traders and investors within the cryptocurrency market. This surge has sparked conversations about potential future gains.
As SEI gains popularity in the digital asset space, the primary question arises: Can SEI uphold this remarkable momentum?
Analyzing Latest Price Movement of SEI
Currently, SEI is being traded at $0.461, marking a notable 24.71% surge in a single day. This substantial increase brings SEI closer to the upper Bollinger Band, often indicating overbought conditions.
Despite this, the relative strength index (RSI) stands at 68.11, suggesting room for further expansion before reaching overbought levels.
Consequently, many traders now focus on whether SEI can surpass its present resistance or if a short-term retraction is imminent.
Therefore, the upcoming trading sessions could be critical for SEI’s price performance.
SEI’s Surge in Trading Volume and Its Impact
Alongside the price surge, SEI’s trading volume has surged by 343% within 24 hours, reaching $958.68 million at present. This substantial increase in volume underscores growing market interest, likely influenced by institutional participation and retail traders seeking to benefit from the momentum.
Moreover, heightened volume generally brings about more liquidity, facilitating smoother price movements with minimal slippage.
Consequently, this surge in volume might drive SEI towards testing higher resistance levels in the short term. Nevertheless, a decrease in volume could potentially lead to a stagnation or reversal in price movement.
Total Value Locked (TVL): Indication of Increasing Confidence
SEI’s decentralized finance (DeFi) ecosystem is another factor propelling its ascent. The TVL of SEI has surged to $559.43 million according to DeFiLlama.
This rise suggests that more users are locking their assets into SEI’s protocols, signifying a growing faith in its ecosystem.
Additionally, as TVL expands, SEI’s network gains increased liquidity, establishing a groundwork for sustained growth. Hence, the expanding TVL serves as a crucial element in supporting SEI’s positive trajectory.
Long and Short Position Ratio of SEI
At present, 51.38% of traders are in long positions, while 48.62% are shorting the token. This near equilibrium reflects caution among traders, though the slight inclination towards long positions indicates a bullish sentiment.
Therefore, with a long-to-short ratio of 1.0568, optimism is implied. Nonetheless, a sudden shift in sentiment could trigger volatility.
Given SEI’s robust fundamentals, increasing volume, and expanding TVL, the momentum is likely to persist. SEI has an 80% probability of continuing its upward trend in the near future.
However, traders should exercise vigilance regarding resistance levels and potential price swings, as short-term adjustments remain feasible.