Over the past few weeks, SEI’s open interest has grown by nearly 100%.
The RSI and 14-day SMA lines have crossed above the averages, suggesting a bullish scenario ahead.
SEI shares have shown signs of recovery over the past few weeks after bouncing off the $0.25 level. A gain of nearly 31% last week suggests that shares have a strong appetite to recover from their lows.
Furthermore, prices have resumed their upward trend this week, gaining nearly 13%. However, prices appear to be losing momentum as they approach a resistance area. At the time of writing, SEI prices are hovering near a key area, making it difficult to identify a clear trend.
SEI Tokens will be unlocked soon
Sei is an innovation in the blockchain space specifically designed to improve the efficiency and performance of decentralized exchanges (DEX). It leverages an industry-specific Layer 1 blockchain architecture optimized for trading, significantly improving the security of DEXs by meeting their unique requirements.
Its market cap is close to $1.19 billion, ranking 68th in the cryptocurrency market at the time of writing. Of the total supply of 10 billion SEI tokens, 3.17 billion are in circulation.
In addition, the SEI token unlocking progress shows that 31.75% (3.17 billion SEI tokens) have been unlocked. Currently, about 44.75% (4.48 billion) of tokens are locked, and 32.49% have not yet been tracked.
The latest token unlock event is scheduled for August 15, when 220.16 million SEI tokens will be unlocked. The unlocked tokens will be distributed to the foundation, ecosystem reserve, team, and private placement investors.
OI data shows increased demand
SEI prices have continued to rise in recent trading, rising 43% over the past few weeks. Along with the recent price surge, on-chain metrics have also seen significant growth.
The number of open interest has grown strongly over the past few weeks, with nearly 100% growth. According to data from the on-chain analysis site Santiment, the number of open interest has increased from nearly 25 million to nearly 49 million, an increase of nearly 100%.
The OI data shows the number of open contracts for a cryptocurrency. A high OI figure indicates an increase in the number of investors, which could increase demand.
SEI Price in Critical Area: What’s Next?
Despite the bullish sentiment in recent sessions, the long-term trend remains bearish until Sei price breaks below the 200-day exponential moving average. At press time, the price is hovering in a critical area from which both a breakout and a breakdown are possible.
At the time of writing, the RSI line is around 54.7 points and the 14-day SMA line is around 52.5 points. Both the RSI line and the SMA line are above their moving averages and trending up, suggesting that the trend will continue.
Based on the combined analysis of the OI data and the RSI, it is clear that the bulls are in command and the price is likely to continue to rise. On the higher side, the $0.45 level is likely to act as a hurdle for the bulls. A break above this level is likely to validate a bullish reversal for the cryptocurrency.
Conversely, if the sellers resurge and the price drops below $0.35, continuation to $0.29 is possible. Short-term traders and investors need to keep an eye on these levels.
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Overall, SEI’s utility continues to increase, and its EVM compatibility helps it grab dominance from Ethereum. While technical analysis is bearish, price predictions paint a different picture. In terms of price performance, SEI shows signs of moving higher; however, it remains subject to the overall market sentiment. Factors such as a market crash or strict regulation could invalidate this bullish theory.
