Analysing the SEI Market: Can the Current Bullish Sentiment be Sustained?
SEI [SEI] has been on a consistent downward trajectory after encountering a significant resistance zone, resulting in a 9.48% decrease over the last month. Within the past 24 hours, the asset has extended this decline, registering a 5.95% loss.
Uncertainty prevails regarding market trends, compelling traders to assess crucial technical levels and indicators to ascertain a clearer direction, as identified by CryptoCrypto.
Emergence of an Upward Trend
On the charts, SEI has retraced to the lower limit of its upward channel, known as support, following a sharp rejection at the channel’s resistance level.
Based on technical patterns, the asset is expected to exhibit an upward trajectory from this support level, with a potential target set at $0.65.
Nevertheless, the asset’s next significant move towards this new target, whether it is an upsurge or a pullback, will rely heavily on the extent of selling pressure at the aforementioned resistance point.
Strategic Positions of Leading Traders for an Upward Movement
According to Coinglass, top traders at Binance are showcasing a positive attitude towards SEI, evident from the long-to-short ratios derived from account sizes and position magnitudes among these traders.
The current long-to-short (accounts) ratio of top Binance traders stands at 3.65, indicating a higher number of accounts predicting a rise in SEI’s price.
Likewise, the long-to-short (positions) ratio, representing the capital allocation to long positions versus shorts, is at 2.2286, showcasing that bullish traders have heavily invested in long positions relative to short ones.
The recent liquidation data further supports this optimistic sentiment, with short liquidations totaling $14,230 in the last four hours compared to just $1,340 in long liquidations.
This disparity signals mounting pressure on short traders as SEI’s price exhibits an upward trend.
Contrary Liquidity Flow Trends Impact SEI
The prevailing liquidity flow in the market appears to oppose SEI, with minimal activity indicating a lack of fund inflow towards the asset.
The Total Value Locked (TVL), reflecting the total capital deposited in SEI-related protocols for activities like staking, lending, and liquidity provision, has plummeted to $216.44 million in the last 24 hours.
This decline follows a surge witnessed the previous day, continuing the downward trend that initiated on November 30, as per DeFiLlama.
Concurrently, data from Coinglass reveals a notable increase in the volume of SEI available on cryptocurrency exchanges. Particularly, the volume of SEI moved to exchanges has entered positive territory for the first time since October 14.
A positive Exchange Netflow, observed in the case of SEI, signifies that spot traders are transferring their funds to exchanges in anticipation of selling.
Should this trend persist, there is a possibility of further decline in SEI’s price from its current trading level, with the support line poised delicately.