Sei (SEI) Surges as USDC Integration Sparks Investor Interest
Sei (SEI) is extending its gains, climbing nearly 8% to around $0.326 on Friday. This surge follows a nearly 25% increase this week. The primary driver behind this rally is Circle’s announcement on Thursday. Circle revealed that the native USDC stablecoin and Cross-Chain Transfer Protocol (CCTP) V2 will soon be available on the Sei network. This news has reignited investor interest.
Why is SEI Rallying?
Sei’s price has experienced a significant rally, increasing almost 25% this week. In the last 24 hours, SEI rose by 23%.
Circle’s announcement is the main reason for this price increase. The integration of USDC and CCTP V2 could lead to wider adoption. It could also result in a faster network and increased activity within the Sei ecosystem. This, in turn, could boost the deposit or utilization of assets within SEI-based protocols.
Another factor contributing to SEI’s rally is Bitcoin’s recent surge. Bitcoin reached a new all-time high above $117,000 on Friday. As the largest cryptocurrency by market capitalization hits record levels, it has triggered broader optimism for the cryptocurrency markets in general. Most altcoins, like SEI, are following BTC’s lead.
Open Interest and TVL Reach All-Time Highs
On-chain and derivatives data support a further bullish outlook for Sei. Data from Coinglass shows that the Open Interest (OI) for futures on SEI increased from $238.84 million on Wednesday to $366.97 million on Friday. This marks a new all-time high. A rising OI represents new money entering the market and new buying activity. This could fuel the current SEI price rally.
Data from DefiLlama shows that Sei’s Total Value Locked (TVL) has also increased. It reached a new all-time high (ATH) of $1.32 billion on Friday. This increase in TVL indicates growing activity and interest within the Sei ecosystem. It suggests that more users are depositing or utilizing assets within SEI-based protocols.
Sei Price Forecast: Bulls Take Control
Sei’s price found support around its daily level at $0.254 earlier this week, on Tuesday. It then climbed more than 17% in the following two days. This daily support level roughly coincides with the 200-day Exponential Moving Average (EMA) at $0.264, making it a key support zone. As of Friday, it continues to trade higher at $0.329.
If SEI maintains its upward trend and closes above the weekly resistance at $0.348 on a daily basis, it could extend the rally towards the 50% Fibonacci retracement level at $0.433. This level is drawn from the December high of $0.737 to the April low of $0.129.
The Relative Strength Index (RSI) on the daily chart is at 69, approaching its overbought level of 70. This indicates strong bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover this Friday, giving buy signals and indicating an upward trend.
However, if SEI faces a correction, it could extend the fall to find support around its 200-day EMA at $0.264.
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