Is $SEI Price Set For Another 70% Rally? A double bottom pattern and a declining squeeze signal large gains.
Sei (SEI) has recorded an impressive 77% gain in just seven days, outperforming the rest of the cryptocurrency market, as institutional interest continues to grow.
The SEI price is trading at $0.303 today, June 25, with a 24-hour trading volume of nearly $1 billion.
Despite these advantages, a clear gap has emerged between the technical structure and trader behavior in the derivatives market. So, can SEI hold onto its gains and potentially go higher, or will bears take control?
SEI price at December 2024 highs as bullish setup emerges.
SEI's price has been bullish in recent days, and has defied bearish moves in the broader crypto market.
These gains come after not only high buying interest but also high market activity, with SEI's DEX volume reaching $263 million in one week, according to a recent analysis by Market expart.
The technical setup suggests that this altcoin could be on its way to making significant gains following the maturation of a bullish double-bottom pattern.
Whenever this pattern emerges, it indicates that the upward trend is about to strengthen to support the coin's fresh highs.
This bullish pattern is also on the verge of maturity as the bulls hit the neckline resistance level at $0.27.
Today's candlestick pattern shows that the price has overcome this resistance, but there is still a daily close above it.
If the $SEI price closes two consecutive candlesticks above this resistance level, it can initiate a strong rally. The target price for this double bottom pattern is $0.483, which would represent a 74% upside from the neck resistance level.
The SEI has been trending up since last week, and despite the aggressive buying pattern, the RSI on the higher timeframe shows that there is still room for further gains. This indicator stands at 54, a sign that the momentum governing SEI price action is bullish.
A long short squeeze can give rise to benefits.
The $SEI has recorded a significant increase in short positions over the past 24 hours, and this is evidenced by the funding rate heatmap.
According to Coinglass data, SEI has a funding rate of -38%, the lowest in the crypto industry. That signals a sharp increase in demand for short positions, as futures traders bet the rally could be on the verge of exhaustion.
This setup supports the bullish thesis for SEI price forecasting. When short positions become crowded but price fails to show weakness, such as the emergence of a double-bottom pattern,
it can portend a massive short squeeze. This would accelerate the upward trend for SEI.
Most of these short-term positions are already being eliminated. Over the past two days, SEI has recorded more than $7 million in short liquidations, helping to sustain the rally.
Therefore, the SEI price, despite a 7% gain in the past seven days, still has room for further growth. The emergence of a double bottom chart pattern and a declining squeeze suggest that this altcoin could soon almost double to $0.48.
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