Sei’s [SEI] recent performance has been characterized by a consistent decline from a significant resistance level, resulting in a 9.48% decrease over the past month. In the last 24 hours, the asset has continued to drop, now down by 5.95%.
The current market trends are ambiguous, forcing traders to carefully assess critical technical levels and metrics in search of clearer insights, as highlighted by CryptoCrypto.
Emergence of an Upward Trajectory
SEI has retraced to the lower end of its upward channel, serving as a support level after facing a strong rejection at the channel’s resistance boundary.
Technical analysis suggests that from this support level, the asset is likely to shift towards an upward trend, with a potential target of $0.65.
Nevertheless, the asset’s next significant move towards the new target will be influenced by the selling pressure present at that resistance level.
Optimistic Outlook from Top Traders
Top traders on Binance, as per Coinglass data, are displaying a bullish sentiment towards SEI, as indicated by the long-to-short ratios based on their account and position sizes.
Currently, the long-to-short ratio for these top traders stands at 3.65, suggesting a higher number of accounts anticipating an upward movement in SEI’s price.
Likewise, the long-to-short positions ratio, reflecting the capital distribution between long and short positions, is at 2.2286. This indicates a substantial capital allocation to long positions compared to short positions.
The liquidation data further supports this bullish sentiment, with short positions witnessing higher liquidations compared to long positions, implying growing pressure on short traders amidst SEI’s upward momentum.
Contrary Liquidity Trend for SEI
The current liquidity flow appears to be working against SEI, with minimal market activity signaling a lack of funds being directed towards the asset.
The Total Value Locked (TVL), representing the total capital deposited into SEI-related protocols for various activities, has decreased to $216.44 million in the past day.
This decline follows a surge observed the previous day and continues the downward trajectory that started on November 30 based on DeFiLlama data.
Furthermore, data from Coinglass indicates a notable increase in the amount of SEI available on cryptocurrency exchanges. Particularly, the volume of SEI transferred to exchanges has turned positive for the first time since October 14.
A positive Exchange Netflow, as seen with SEI, signals that spot traders are moving their funds to exchanges, potentially in preparation for selling.
If this trend persists, SEI’s price could experience further declines from its current trading position, with the support level appearing increasingly fragile.