SEI is close to the $0.20 breakout mark; an increase above the breakout would lead to a short squeeze and a break to $0.30 in the next few days.
SEI is trading near a pivot of $0.20, which might determine its direction in the market in the short run. Over weeks, the price has been making a critical accumulation between an approximate range of 0.18 and 0.19 above and below the price range of 0.20.
According to the analysis provided on X by Sei Intern, the threshold of 0.20 is the point that is crucial to break.
Source – X
Any sustained rise above this would indicate a shift in the existing consolidation to an expansion stage, and virtually no resistance on the level of 0.21 to 0.29. Millions of short positions clustering around the $0.20 level form the short stop-loss zone.
Any breach of this barrier by SEI would force short sellers to sell. This would lead to a sudden squeeze and a rapid rise in price.
Such a technical arrangement indicates a typical situation where the bears will lose significant amounts of money. The bulls will aim to capture the momentum.
Liquidity Heatmap Underscores Clear Path for Upside
In line with the breakout potential, liquidity heatmaps indicate a broad no-resistance area after $0.20.The trading volume difference between 0.21 and 0.29 is significant. It indicates that the price of SEI may rise rapidly without much selling pressure.
These liquidity voids are smooth sailing routes towards rapid price discovery, which accelerate progress driven by short-covering and speculative purchases.
This is the technical factor that supports the optimistic view that is standing above the breakout level.
SEI has a market capitalization of about 1.22 billion and a 24-hour trade volume of over 53 million. These figures indicate a good liquidity level and a healthy market presence.
The token distribution is further evidenced by the fact that the circulating supply of 6.25 billion SEI tokens is against a total supply of 10 billion, which limits the risks of inflation. These are the basic considerations on the technical arrangement of a possible breakout run.
Market Compression Builds Anticipation of Breakout
The current price compression indicates increasing pressure between buyers and sellers. The volume is getting smaller as the volatility declines.
Major directional shifts frequently follow the trend. A close above $0.20 on increasing volume would confirm a bullish movement and could trigger a short-term price surge toward the 0.22–0.25 zones, with a breakout horizon at 0.30.
The data on market structures shows that the bears are on very thin ice. There are too many shorts and inadequate liquidity above this critical price point.
The current price activity of SEI aligns with the overall technical movement of previous accumulation areas. In these areas, institutional buyers generally set their positions before significant rallies.
If the breakout becomes a reality, these gains might continue in a more aggressive manner. More people could join the uptrend in the coming weeks.
Source: https://www.livebitcoinnews.com/market-news-sei-eyes-breakout-above-0-20-with-shorts-on-edge/