Sei Price Breaks Out of An Interesting Pattern: Time To Ride

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Sei Price Breaks Out of An Interesting Pattern: Time To Ride The Trend?
Following a breakout of an interesting pattern, the Sei price surged nearly 35% indicating a strong bullish sentiment.
The open interest contracts have surged by a massive 137.3% a week indicating the rally driven by the derivatives traders.

Sei's (SEI) price recent rally has catapulted it to the forefront of the weekly top performing cryptocurrencies. Following the breakout of an interesting pattern, Sei has lifted off over 35% a week indicating a strong bullish sentiment.

The breakout marked an end to a prolonged correction phase which SEI was suffering for the last two quarters. Fueled by the ongoing optimism in the market, the Sei price has benefited greatly attracting derivatives traders the most.

As per our analysts, Sei could continue a rally to achieve an additional 25% gain before heading towards a correction if the bullish market sentiment persists. Let's decode how it went till now and what are the factors that could contribute to the growth of Sei.
Sei On-Chain Data Analysis: Derivatives Traders Driving The Trend
At the time of writing, SEI was exchanging hands close to $0.461 recording a significant intraday growth of 6.38%. It is the first sector specific Layer 1 blockchain with a live market capitalization of $1.62 Billion. Sei is specialized for trading to provide exchanges an unfair advantage.

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Sei price has recently revealed a strong up-move, prompting renewed optimism in the broader market. Amid the price surge, several on-chain indicators suggest that the token price could bounce like it did six months ago.

As per Santiment, an on-chain analytics website, the open interest contracts which were nearly $55 Million, a week ago have now surged to $136.3 Million indicating a strong inflow. Over the week, the derivatives traders have placed aggressive bullish bets of $81 Million boosting the inflow by 147% a week.


<iframe title="Santiment Chart: Social Dominance (SEI), Social Volume (SEI)" width="800" height="425" src="embed.santiment.net/chart?ps=sei&pt=SEI&df=2024-06-24T18:30:01.199Z&dt=2024-09-25T18:29:59.199Z&emcg=1&emhwm=1&wm=social_dominance_total;social_volume_total&wax=0;1&wc=#5275FF;#68DBF4&ws={"interval":"1d"};{"interval":"1d"}" scrolling="no"></iframe>

Along with a strong inflow by the derivatives traders, the social metrics have surged to a three months high. The social metrics include the activities and news floating over the social media and how to users are reacting to it.

As of now, the social volume as well as social dominance curve has been headed upward indicating the increasing participation of social media users which could further reflect a positive effect on the price.
Sei Price Analysis: Analysts Are Bullish Despite A 35% Rise
Over the daily chart, Sei's price noted a breakout of an interesting inverted head and shoulder pattern and has gained nearly 35% following the breakout. However, the analyst's view still assumes further growth in the crypto.



Moreover, the intraday trading volume has surged by 296.7% to $527.16 Million a day indicating a heightened demand. The volume to market cap ratio at 32.02% indicates high volatility in the crypto.

On the higher side, the analysts are anticipating an additional 25% growth till the next supply of $0.581 level. On the lower side, the price has made a breakout of the previous supply of $0.39 level which now has been flipped into a support.

The technical indicators Exponential moving average and MACD present a short term bullish outlook with a trend continuation at the moment.