- SEI nears $0.36 despite a sharp 62.5% drop in futures volume.
- Technicals show bullish strength as SEI flips key Fibonacci resistance into support.
- Derivatives activity weakens as traders turn cautious despite price momentum and RSI strength.
The price of SEI is approaching the $0.36 mark, successfully breaching the important resistance area. However, the volume of the derivatives activity has declined significantly. Technical indicators are still in the bullish zone. But there’s a drop of 62.50% in the futures trading volume. ‘
In addition, a decrease in the open interest indicates short-term caution. The support is building up at the $0.30-$0.32 range, and the prospective resistance is around $0.40.
SEI Breakouts Above Major Fibonacci Levels
SEI is trading at $0.3526 on Coinbase and has had a breakout on the daily chart from TradingView. The token has now breached the 0.618 Fibonacci retracement level to trade above $0.26. This price has acted as a limit in previous rallies.
This reclaim represents a change of structure, showing that buyers are in control. The present trend shows a flip of the $0.2943 level into support. This level is close to the 0.236 Fib area. The second price target will be the $0.40 region, where a local top was established in March.
The current value of VWAP is $0.3490. The token’s price is also above this, and this means that the buyers continue to dominate at the moment. In case SEI finishes the day above VWAP, the existing momentum may stretch to the following session. A dip below VWAP may attract selling among short-term traders and may imply a change of hands.
Fib. and VWAP. Source: TradingView
Also Read | SEI Price Breakout: Bullish Momentum Signals Surge Toward $0.50
SEI Continues to Demonstrate Bullish Momentum
This momentum has been confirmed by other technical indicators, which point to the strength of the recent move. The Relative Strength Index stands at 66.42, close to the 70 mark, which is usually the overbought region. A move above 70 might lead to more gains, but it increases the risk of short-term retracement.
Bullish momentum is still supported by the MACD. The MACD line is above the signal line, and both lines are constantly moving up. Such a situation has happened in previous SEI uptrends.
The rally of SEI started in June, after reaching a low at $0.1582. Price has since increased by over two times in less than two months. The sharp gains have brought attention back to the token as a leading performer of mid-cap altcoins.
The immediate support is found between $0.30 and $0.32. The same zone was a resistance before, and it’s now a strong support. Trading above it will be an important measure in keeping the bullish market structure.
A decline over that level would open the door to short-term selling and spoil the breakout pattern. A flip of the $0.36 mark as support will create the possibility of retesting the resistance at $0.40.
MACD and RSI. Source: TradingView
The Pace of SEI Rally Slows
Based on Coinglass data, the derivatives market is showing a lack of interest despite the positive price movement. SEI futures volume experienced a 62.50% decline to $402.13 million within the last day. This fall is proof that leveraged traders are scaling back their activities.
Meanwhile, open interest on SEI derivatives has fallen by 1.55% to $384.03 million. This indicates that open positions are closed and not opened.
This negative correlation between bullish price movement and declining derivative movement is a warning sign. It indicates that traders are becoming conservative and maybe locking in profits.
SEI has remained strong technically, though it is worrying how it has fallen sharply in its derivatives. Without new futures volume and open interest recovering, there is a possibility of the token being unable to force the climb. Bulls will be required to protect support levels and play more significant roles to continue the uptrend.
Source: Coinglass
Also Read | SEI Targets $0.47 as Breakout Momentum Builds Ahead of August Rally
