- SEI price faces key resistance at $0.2900 crucial for a potential rally toward $0.70.
- MACD and RSI show short-term bearish signals for SEI price, suggesting consolidation.
- Increased volume and decreased open interest indicate mixed market sentiment for SEI.
As the SEI price trading pair shows signs of consolidation, traders are eyeing a critical price point. Will the SEI price break above the key $0.2900 resistance, signaling a potential rally toward $0.70. With technical indicators showing mixed signals, all eyes are on the next move. The outcome could determine whether the market sees further upward momentum or faces a potential pullback.
SEI Price Faces Short-Term Bearish Signals in Technical Indicators
The Moving Average Convergence Divergence (MACD) for the SEI price is currently showing a slight bearish bias in the short term. The MACD line is positioned below the signal line, and the negative histogram further confirms the current bearish momentum. This suggests that the SEI price could experience a pullback or further consolidation before any potential upward movement.
Source: TradingView
Additionally, the Relative Strength Index (RSI) stands at 47.49, indicating a neutral market condition. However, bearish divergences are visible in the RSI, especially during recent rallies. While the SEI price made higher highs from mid-July to early August, the RSI failed to reflect matching strength, pointing to a weakening momentum and suggesting the possibility of a price correction.
Volume and Open Interest Trends for SEI Price Suggest Mixed Sentiment
SEI price is signifying a 7.47% raise in volume shows greater market activity and renewed interest in the asset. There has been a significant increase in volume, indicating that traders are paying more attention and may be expecting a large movement. However, open interest has dropped by 1.94%, potentially indicating that some traders may be liquidating positions, causing a drop in active contract numbers.
The decline in open interest, particularly when combined with increased volume, may reflect a loss of conviction in the direction of the trend and uncertainty concerning the future course of prices.
Source: Coinglass
Additionally, the long/short ratio between various exchanges such as Binance and OKX indicates a bias towards longs. Although that is a rather bullish factor, the increased amount of liquidations on the long side is concerning.
The risk of overleveraged traders being squeezed out of their trades might cause a crash in the SEI price in case the market turns against the leveraged traders.
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