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SEI market watch: Long-to-short ratios indicate bullish sentiment, but…
The price of Sei (SEI) has been in a downward spiral over the past month, with a significant drop of 9.48% since then. Over the last 24 hours, it has experienced an additional decline of 5.95%. As traders weigh their options and consider potential next steps, we must acknowledge that the data suggests an unmistakable bullish sentiment.
A crucial indicator to keep an eye on is the asset’s relationship with its ascending channel. Notably, SEI has retreated to the lower boundary of this channel, which could potentially lead to a rebound and target $0.65. This conclusion comes after experiencing a sharp rejection at the upper channel level. The trajectory will largely depend on the selling pressure at that resistance point.
Despite this mixed signal, top traders on Binance have shown a strong inclination towards SEI increasing in value, as seen from their long-to-short ratios. Notably, the long-to-short (accounts) ratio currently sits at 3.65 and the long-to-short (positions) ratio is 2.2286, indicating that more accounts and a significantly larger capital allocation are on the side of bullish traders.
This sentiment is further underscored by the liquidation data from Coinglass, where short positions have been liquidated for $14,230 over the past four hours compared to only $1,340 in long liquidations. This imbalance reflects increased pressure on short sellers as SEI’s price exhibits upward momentum.
Contrary to this optimistic outlook, a more concerning trend has emerged. The Total Value Locked (TVL) data from DeFiLlama reveals that the capital deposited into SEI-related protocols for activities like staking, lending and liquidity provision has dropped by $216.44 million in the past 24 hours, marking a downward trend since November 30.
A conflicting signal emerges with Coinglass showing an uptick in the volume of SEI moved to exchanges, which is the first positive turn since October 14. Although this could be interpreted as spot traders moving their funds for potential selling purposes, it also suggests that traders are preparing for a shift and may not abandon ship.
In conclusion, while long-to-short ratios do indicate bullish sentiment in the market, we cannot ignore the mixed signals provided by TVL data and exchange volume trends.
Source: ambcrypto.com
