Analysis of SEI network development trends and price driving factors
The SEI network has seen impressive growth recently, with daily transactions exceeding 1.5 million and active addresses reaching over 616,000. Against this backdrop, the price of the SEI cryptocurrency has increased by 12.72% to $0.2097 as of this writing. Indeed, this signal shows a sustained trend of activity flow on the network, reflecting genuine interest from the investor community.
The reason for this increase may be related to the organic acceptance of the ecosystem, rather than being based solely on market manipulation or short-term speculation. The growth of grassroots trading activities and capital flows into the market has caused a real boost, encouraging long-term investor sentiment.
Really or just a frivolous craze?
On June 20, SEI hit 0.26% Social Dominance, its highest level in over two months. Additionally, the average Sentiment Index rose to 3.66, reflecting the crypto community’s overwhelming enthusiasm for the project. But it’s worth noting that community sentiment often follows a previously established trend, suggesting that consensus may be based on increased usage rather than just a temporary crowd effect.
Source: Santiment
However, as sentiment continues to climb without any additions in usage, this may reflect a one-time performance rather than a sustainable signal for long-term growth. This index needs to hold steady, coupled with steady capital flows, to point to a more sustainable growth in the future.
Source: Santiment
Leverage increases, but does it represent confidence or risk?
SEI futures markets have seen an explosion in open interest with a 42.73% increase and trading volume surpassing $502 million, indicating that traders have begun to open leveraged positions to take advantage of the long-term bullish momentum. However, the danger lies in the possibility of rapid liquidations if the market fails to maintain its uptrend, leading to high risks for investors without a clear strategy.
The derivatives market appears to be showing confidence in the uptrend at the moment, but it is a signal that needs to be watched closely as it relates to leverage pressure and the possibility of a sharp correction in the short term.
Biggest spot capital in weeks!
SEI’s >– Net Spot Inflows Index reached $2.19 million at this time, a weekly spike. This reflects the possibility of positive inflows from bithumb investors accumulating again, which could lay the foundation for a mid-term uptrend with increasing trading activities and community participation.
These flows, along with trading volume and social media events, can fuel the ability to sustain long-term growth momentum. However, these investments need to be sustained over the long term to confirm the sustainability of the trend towards a real breakout.
Source: CoinGlass
Can SEI break above this major resistance zone?
After bouncing off the $0.1659 support zone, SEI is attempting to overcome the resistance near $0.2135 and is eager to extend the upside momentum towards $0.2766. If the price succeeds in conquering it, it is likely to trigger a long-term uptrend towards the $0.35 target.
However, these resistance levels have proven difficult in the past, unless there is a strong increase in volume and money flow into and out of the market, the bullish momentum may be interrupted or weakened.
Source: TradingView
Maintain current growth structure
Overall, SEI still maintains positive signs from user activity, social discussions, money flows, and leveraged positions. If the price breaks through key resistance levels along with high trading volume, the market could extend its short-term bullish momentum.
If it fails to surpass the $0.2766 mark, there is a high possibility that the price will move into a consolidation or correction state to accumulate strength for the next steps. Investors need to closely monitor market developments to have the most suitable strategy.
Source: https://tintucbitcoin.com/sei-network-dat-muc-tieu-gia-ngan-han/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
