In the past month, the altcoin market has mostly fluctuated within a narrow range, lacking the momentum for a breakout. At the time of writing, the force that had previously helped maintain a strong rise to the sky in July and the first half of August has decreased significantly.
Daily SEI/USDT Chart | Source: TradingViewThe altcoin market capitalization chart clearly reflects the impact of Bitcoin (BTC) volatility in recent weeks, causing the entire market to fluctuate. Ethereum (ETH), on the other hand, still shows resilience, successfully defending the 4,300 USD mark multiple times against selling pressure.
According to observations by Bitcoin Magazine, the ETH/BTC pair has fallen by 8% – an early signal indicating that capital flow is trending back towards Bitcoin.
In that context, Sei (SEI) has emerged as an attractive opportunity for swing traders. The question now is: should we consider opening a Long position with SEI, when the capital seems to be flowing strongly towards BTC?
Is SEI an attractive buying opportunity?
On social media X, analyst Ali Martinez stated that SEI has sent a buy signal after bouncing back from the local bottom around 0.27 USD.
According to him, the next important price milestones that SEI is aiming for are 0.32 USD and 0.37 USD - critical thresholds within the current fluctuation range.
Source: Ali Martinez on XOn the 4-hour chart, SEI still maintains a positive market structure. To preserve this outlook, the price needs to stay above the higher low at 0.2814 USD, established on September 3.
Additionally, the OBV indicator did not show a new low in the past week, while the MFI is showing signs of rising – signals that reinforce the possibility that SEI is preparing for a new upward movement.
SEI/USDT chart 4-hour | Source: TradingView## The derivatives market does not support the upward trend
However, this optimistic picture has not yet been reflected in the derivatives market. Over the past two days, SEI recorded a rise of 9.39%, from 0.27 USD to 0.296 USD. However, the open contract (OI) did not accompany the recovery.
Hourly SEI/USD chart (futures exchange) | Source: TradingViewAccording to data from Coinalyze, OI has fallen from 120 million USD to 114.6 million USD right during the price increase phase, indicating that speculators lack confidence in the short-term bullish outlook.
In the context of the altcoin market being stagnant for several weeks, along with a cautious sentiment reflected through OI, SEI, although attractive, still poses significant risks for investors seeking buying opportunities.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
SEI signals a buy, but traders need to be cautious of some potential risks.
In the past month, the altcoin market has mostly fluctuated within a narrow range, lacking the momentum for a breakout. At the time of writing, the force that had previously helped maintain a strong rise to the sky in July and the first half of August has decreased significantly.
According to observations by Bitcoin Magazine, the ETH/BTC pair has fallen by 8% – an early signal indicating that capital flow is trending back towards Bitcoin.
In that context, Sei (SEI) has emerged as an attractive opportunity for swing traders. The question now is: should we consider opening a Long position with SEI, when the capital seems to be flowing strongly towards BTC?
Is SEI an attractive buying opportunity?
On social media X, analyst Ali Martinez stated that SEI has sent a buy signal after bouncing back from the local bottom around 0.27 USD.
According to him, the next important price milestones that SEI is aiming for are 0.32 USD and 0.37 USD - critical thresholds within the current fluctuation range.
Additionally, the OBV indicator did not show a new low in the past week, while the MFI is showing signs of rising – signals that reinforce the possibility that SEI is preparing for a new upward movement.
However, this optimistic picture has not yet been reflected in the derivatives market. Over the past two days, SEI recorded a rise of 9.39%, from 0.27 USD to 0.296 USD. However, the open contract (OI) did not accompany the recovery.
In the context of the altcoin market being stagnant for several weeks, along with a cautious sentiment reflected through OI, SEI, although attractive, still poses significant risks for investors seeking buying opportunities.
SN_Nour