SEI flashes buy signal – But traders should watch THESE risks
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Key Takeaways
Sei introduced a superb shopping for alternative after retesting the vary lows, and was up 5.3% in below three days. Does this chance outweigh the dangers, reminiscent of weak sentiment?
The altcoin market has been shifting sideways over the previous month. At press time, it lacked the energy to development greater prefer it did in July and the primary half of August.
Supply: TOTAL2 on TradingView
The altcoin market capitalization chart confirmed how the market has been affected by the Bitcoin [BTC] volatility in current weeks. Ethereum [ETH] has held up fairly properly, defending the $4.3k degree towards promoting strain.
AMBCrypto noticed that the ETH/BTC noticed an 8% dip, which could possibly be an early sign of capital rotation into Bitcoin.
In these circumstances, Sei [SEI] introduced a shopping for alternative for swing merchants. So, must you look to lengthy SEI when capital move may be pointed towards BTC?
How can merchants navigate the dangers of shopping for SEI now?
In a post on X, crypto analyst Ali Martinez noticed that SEI confirmed a purchase sign after rebounding from the native vary lows at $0.27.
The subsequent worth targets are $0.32 and $0.37, the following vital ranges throughout the range-bound worth motion of SEI.
Supply: SEI/USDT on TradingView
On the 4-hour chart, SEI has a bullish market construction. To take care of this, it has to maintain above the upper low at $0.2814, made on the third of September.
The OBV has not made a brand new decrease low over the previous week, and the MFI has begun to clamber greater. Collectively, they had been indicators {that a} Sei rally was potential.
Nonetheless, this bullish outlook was not mirrored within the derivatives market. Over the previous two days, SEI made a 9.39% rally, reaching from $0.27 to $0.296. But, the Open Curiosity didn’t development greater.
Coinalyze data confirmed that the OI sank from $120 million to $114.6 million partway via the rally. It mirrored a scarcity of short-term bullish conviction amongst speculators.
The dearth of momentum for the altcoin market in current weeks, mixed with the short-term bearish sentiment from the OI traits, confirmed that SEI could possibly be a dangerous shopping for alternative.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
