Sei spikes 25%, breaks key resistance as bulls eye $0.50

The price of the native token of Sei, a layer-1 blockchain for high-frequency cryptocurrency trading, has increased by more than 25% in the past 24 hours.

The Sei (SEI) rose to $0.471 on major exchanges earlier in the day from an intraday low of $0.366 on September 25.

The token’s market value has climbed to $1.6 billion, its highest level since June 12, making it the 59th largest digital asset globally, according to CoinGecko data.

The price increase came alongside a 187% increase in daily trading volume, which currently sits around $523 million. Additionally, Coinglass data shows that SEI’s daily open interest has increased by 34.4% to $170.3 million at press time, suggesting increased investor activity fueling SEI’s ongoing rally.

The SEI has broken out of a falling wedge formation on the 1-day chart, a technical formation that usually signals further upside potential.

SEI price, Bollinger Bands and RSI chart – September 25 | Source: crypto.news

Moreover, the breakout of the upper Bollinger Band located at 0.4503 shows that the bullish momentum remains strong.

The Directional Momentum Index is showing increasing bullish momentum with a rising +DI and a falling -DI, ​​suggesting that selling pressure is abating. At the same time, the Average Directional Index is climbing, suggesting that the previously weak bull trend is gaining strength.

SEI DMI – September 25 | Source: crypto.news

Considering the current trend, traders should keep an eye on the $0.50 level, which could serve as the next psychological resistance. A successful breakout of this level, combined with strong volume, could push the price towards $0.55 or higher.

However, the overbought Relative Strength Index at 74 suggests the possibility of a correction or consolidation in the near-term. In case of a reversal, the middle Bollinger Band around $0.3224 could serve as a key support level.

Major liquidation levels

According to Coinglass, the key liquidation thresholds for SEI currently sit around $0.454 on the downside and $0.475 on the upside, with significant leverage among day traders at these levels.

Source: CoinGlass

If the SEI drops to $0.454, approximately $494.47K in long positions could be liquidated. Conversely, a rise to $0.475 could lead to the liquidation of approximately $3.44M in short positions.

As we went to press, it appeared that the bulls were taking control and there was the potential for short positions to be liquidated at higher levels.