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SEI market watch: Long-to-short ratios indicate bullish sentiment, but…
The price of SEI has recently been experiencing a downward trend, with a 9.48% drop over the past month and a further 5.95% decline in the last 24 hours. However, despite this bearish movement, long-to-short ratios suggest that traders are betting on an upward move.
According to Coinglass, top traders on Binance have been positioning themselves for an upswing, with long-to-short (accounts) and long-to-short (positions) ratios indicating a strong bullish sentiment. The former ratio currently stands at 3.65, while the latter is at 2.2286. This suggests that not only are more accounts betting on SEI’s price moving higher, but also that these traders have invested significantly more capital in long positions compared to shorts.
Moreover, liquidation data from Coinglass reveals an imbalance between short and long liquidations. Over the past four hours, $14,230 was liquidated due to short positions being closed out, while only $1,340 was lost due to long positions being unwound. This disparity reflects the increased pressure on short traders as SEI’s price exhibits upward momentum.
Notably, the current liquidity flow in the market appears to be opposing the bullish sentiment. A significant drop in the Total Value Locked (TVL) has been observed over the past 24 hours, standing at $216.44 million, a decline that started on November 30 and has continued downward since then as seen on DeFiLlama.
On the other hand, the amount of SEI available for exchange has increased, with a positive Exchange Netflow for the first time since October 14 on Coinglass. This surge in availability could potentially lead to further selling pressure, causing the asset’s price to decline even further.
In conclusion, while long-to-short ratios suggest an optimistic outlook, other metrics imply that this sentiment may not hold true. It remains unclear what direction SEI will take moving forward, as these contradictions in signals provide no clear guidance on a potential reversal or continuation of the current downward trend.
Source: ambcrypto.com
