Sei [SEI] is an emerging asset in the cryptocurrency market that has gained a lot of attention due to its price performance over the past week.

The asset is up 14.1% during this period and its upward momentum has continued into the past 24 hours.

As of this writing, SEI has gained a further 7.9% and is trading at $0.3118 at press time.

The ongoing price rally has sparked discussion in the cryptocurrency community about the potential for further upside for SEI, especially as technical indicators began to align with bullish expectations.

$1 Coming Soon?

The SEI appears to be preparing to break out of a falling wedge – typically a bullish sign.

A falling wedge occurs when asset prices form a converging channel, sloping downward but at a decreasing rate of decline.

This pattern often signals a possible trend reversal, suggesting that an asset may be preparing to surge higher once it breaks out of the wedge.

If the SEI manages to break out of this pattern, it could spark a massive bullish rally that could potentially replicate the sharp gains seen during the November-December 2023 period.

SEI has set mid-term targets of $0.45, $0.66 and $1.00, respectively.

Is SEI ready for this surge?

SEI’s fundamentals send mixed signals for the asset’s direction.

For example, SEI’s open interest, which refers to the total number of open derivative contracts for the asset, shows that over the past 24 hours, the asset’s open interest has increased by 14.55%, reaching a valuation of $76.47 million.

The rise in open interest indicates growing investor interest in SEI, with more traders opening positions in anticipation of future price movements.

Notably, however, SEI’s open interest fell nearly 6% during the same period, falling to an estimated $118.26 million.

The decline in trading volume could indicate that while more positions are being opened, overall trading activity is slowing.

The divergence between rising open interest and falling volume can sometimes indicate a cautious market, potentially leading to increased volatility.

The SEI’s development activity is another important factor to consider. According to data from Santiment, the SEI’s development activity has increased significantly, rising from 2.8 in June to 6.64 at press time.

Development activity reflects the level of innovation and progress of the project.

A high Development Activity score indicates that the project team is actively working on improvements, which can boost investor confidence and contribute to long-term price growth.

For SEI, the increase in development activity demonstrates the program’s significant technical and operational progress.

This could be a positive sign for investors as it suggests that the project is not only maintaining momentum but also building a solid foundation for future success.