The alarms of the crypto market have gone off! 🚨 The digital currency SEI is showing signs that have all analysts glued to their screens and investors with their hearts in their hands.
Despite the market being somewhat down, SEI, the token of the Sei blockchain, keeps rising. It has seen a 45% increase in the last three months and rose 6.3% in just one week. It’s a rocket in a storm, literally! 🚀 But what is causing this surge?
First, people are pulling their money out of exchanges. It has been eight consecutive weeks of net outflows. Last week, more than $10.43 million fled. This is not normal and is a sign that people are holding onto their coins for the long term, as if they know something big is coming. It’s a sign that people have confidence and are buying to hold, not to speculate. 💰
But the main event is what is happening on the charts. What is forming is called a crossover of the EMA (Exponential Moving Average) of 100 and 200 days in the trading world. It sounds technical, but simply put, it's a golden cross. It’s like a green light signal indicating that the bullish trend is going to get stronger. 🚦
And that’s where things get spicy. A lot of traders are betting that the price of SEI is going to fall. They have 'short' positions totaling millions.
If the price rises due to the EMA crossover, these traders are going to lose a fortune. And the wildest part is that to avoid losing, they will have to buy back the token at a higher price, which will cause the price to rise even more. It's a potential short squeeze, a domino effect that could make the price explode like a volcano erupting. 🌋
For SEI to confirm that it's going to the moon, it needs to break the barrier of $0.35. If it succeeds, the next target is $0.37. The question everyone is asking now is: can SEI surpass this level and make those who bet against it regret it?
