The SEI network is seeing a surge in user activity, with a 10.49% increase in active wallets and a 20.13% rise in daily transactions. As the price nears the key resistance level of $0.35, technical indicators hint at an upcoming bullish momentum.
First and foremost, SEI is experiencing a significant increase in user activity, with a 10.49% rise in daily active wallets reaching 561,000, and a 20.13% increase in daily transactions, totaling 1.47 million.
These figures confirm that the SEI adoption wave, which has been building since the beginning of the second quarter, has now entered an acceleration phase, propelling SEI to $0.3039.
These signs indicate renewed momentum, but are they sufficient to push SEI higher?
As shown on the daily chart, SEI has displayed a buy signal since its rebound on June 17. Additionally, SEI has broken above and currently remains above its 200-day moving average. A clear signal of bullish momentum.
SEI’s social dominance reached 0.59% before stabilizing at 0.387%, while positive sentiment exceeded 14 on June 27, according to Santiment data. This increased visibility indicates that the token is attracting broader interest, potentially fueled by strong community support and media coverage.
However, while increased social buzz tends to foreshadow breakouts, it can also attract speculative activity.
Despite the on-chain traction and positive sentiment, funding rates remained negative at -0.032%, indicating a strongly short position. The persistence of red funding bars shows derivatives traders’ reluctance to fully support the rally.
However, this contrary position could serve as fuel for a potential short squeeze, especially if the price continues to rise and forces liquidations on the bearish side of the exchange.
At the time of writing, open interest has increased by 7.78% to reach $310.87 million, reinforcing the idea that speculative capital is returning to SEI. The rise in this metric alongside price typically signals growing confidence.
SEI has successfully broken out of its descending channel after several months of bearish structure. It oscillates around $0.3039, approaching the next key resistance at $0.3508. At the time of writing, the RSI indicates 67.89, meaning it’s bullish but not yet overbought. This gives bulls some room to maneuver, especially if volume follows. However, failure to break through $0.35 could lead to price compression or a reassessment of the breakout zone.
A breakout above $0.35 would leave a clear path to the next resistance at $0.45. This represents a potential increase of 50%.
Ultimately, SEI’s breakout is supported by a strong increase in user activity, speculative interest, and positive sentiment. However, persistent negative funding rates and key resistance at $0.35 introduce short-term risk. If bulls maintain their momentum and exceed this level, SEI could seek new ATHs. This could offer gains exceeding 280% in the coming months.
To invest in this booming blockchain, here’s a guide to buying it on BitMart :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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