SEI Network has taken a daring step into the DeFi sector by merging with Orderly’s cloud liquidity to link with over 30 decentralized exchanges (DEXs) and 60 markets. As a result, this integration has fueled a substantial price hike, driving Sei [SEI] up by 8.33% to $0.396 at the current moment.
This surge has propelled SEI towards its crucial resistance level at $0.42, a level that could determine its future course. A breakthrough at this resistance might pave the way for testing the subsequent major level near $0.50 – a positive signal for investors.
Nevertheless, a failure to sustain the current momentum could lead to a fallback, potentially prompting the altcoin to evaluate the lower support level around $0.36. Therefore, SEI finds itself at a pivotal juncture where any movement could define its short-term trajectory.
Technical indicators – Bollinger Bands and STOCH RSI
SEI’s technical indicators have unveiled insights into its existing trend. The Bollinger Bands, with the upper threshold at $0.4296 and the lower boundary at $0.3565, have highlighted volatility. SEI’s proximity to the middle limit indicated a neutral position, suggesting that a breach above could signal a bullish advancement towards the upper margin.
Conversely, a decline could challenge the lower threshold, introducing bearish pressure.
Moreover, the Stochastic RSI, which indicates momentum, has emphasized bullish divergence with respective values of 13.16 (K line) and 6.50 (D line). Emerging from oversold territories, it has indicated the potential for upward momentum.
Nonetheless, this signal needs to be sustained for the altcoin to avoid a rapid retracement, a pattern observed in prior cycles. Hence, vigilant monitoring of these indicators is vital in spotting trend shifts.
SEI whale activity – Are major holders supporting this surge?
Additionally, whale activity has indicated strong support for SEI. At the current time, 59.22% of the stablecoin supply is held by wallets containing over $5 million – a clear indication of substantial accumulation by large holders.
As a result, substantial whale support often diminishes market supply, creating a scarcity that can drive prices upwards. Thus, continuous accumulation by whales could bolster SEI’s surge, establishing a solid basis for further growth in the DeFi arena.
Open Interest analysis – Surging interest and its consequences
Furthermore, Open Interest has surged by 9.93% to $144.47 million, showcasing heightened interest from traders. A rise in Open Interest indicates confidence in the altcoin’s future price movements and aligns with the recent upsurge in volume.
However, while escalating Open Interest typically signifies market resilience, it also implies potential volatility as more traders anticipate significant shifts. Therefore, a careful observation of Open Interest can offer insights into SEI’s next substantial price direction.
Can SEI uphold its current pace?
Sei Network’s strategic integration into DeFi, supported by whale interest and soaring Open Interest, has reinforced a positive outlook for SEI. The technical indicators and whale support have further underscored its potential.
Nonetheless, surpassing the $0.40 resistance level is crucial to maintaining the momentum. Securing this level could cement its position as a prominent player in DeFi, fostering increased investor trust and progression.