SEI has experienced a notable surge, with its price jumping 25% in the last 24 hours, bringing it to $0.45 — its highest point since June 7.
Its technical setup hints at the possibility of an extended rally. However, the market’s overheated state may make this challenging. Here is how.
Sei Climbs to Multi-Month High
SEI’s double-digit rally has sparked a surge in trading activity within its derivatives market, reflected by a significant rise in open interest. Currently, open interest, which represents the total number of unsettled futures or options contracts, stands at $126.28 million — its highest level since April.
In the past 24 hours, SEI’s open interest has risen by 10%, reflecting heightened market activity. A spike in open interest, particularly when paired with rising prices, as seen with SEI, indicates bullish sentiment as more traders enter the market to buy the asset.
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Further supporting this outlook is SEI’s positive weighted sentiment, which measures market sentiment toward the altcoin. According to Santiment, SEI’s weighted sentiment stands at 2.81, suggesting that positive emotions dominate social media discussions surrounding the coin.
This combination of rising open interest and strong sentiment is a powerful bullish signal, indicating that market sentiment aligns with the price action, increasing the likelihood of a continued rally in SEI’s price.
SEI Price Prediction: Look Before You Leap
Readings from SEI’s daily chart suggest that if buying pressure is maintained, its price may climb by an additional 21% to trade at $0.56. However, this is unlikely as its Relative Strength Index (RSI) signals an overheating market.
At press time, SEI’s RSI, which measures its overbought and oversold market conditions, is 75.09. An RSI value above 70 generally signals an asset is overbought and is due for correction.
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SEI may experience a temporary pullback as buyer exhaustion sets in. The price could retreat to the resistance level at $0.42, and if this fails to hold, it may decline further toward $0.20.
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