SEI Price Set to Obliterate Short Positions as This Rare Pattern Nears Completion

Sei (SEI) has recorded an impressive 77% gain in just seven days, outperforming the rest of the cryptocurrency market, as institutional interest grows. SEI price is trading at $0.303 today, June 25, with nearly $1 billion in 24-hour trading volumes. Despite these gains, a clear divergence has emerged between the technical structure and trader behavior in the derivatives market. Hence, can SEI sustain its gains and possibly rally higher, or will bears take control?

SEI Price Targets December 2024 Highs as Bullish Setup Emerges

SEI price is on a bullish streak in recent days, and has defied the choppy moves across the broader crypto market. These gains not only stem from high buying interest but also high market activity after a recent CoinGape analysis noted that SEI’s DEX volumes hit $263 million in one week.

The technical setup suggests that this altcoin could be on the verge of making notable gains following the maturity of a bullish double-bottom pattern. Whenever this pattern emerges, it suggests that the upward trend is about to become stronger to support the coin’s gains to fresh highs.

This bullish pattern is also on the verge of maturity as bulls target the neckline resistance level at $0.27. Today’s candlestick pattern shows the price has overcome this resistance, but has yet to form a daily close above it.

In case SEI price forms two consecutive candlestick closes above this resistance level, it could kickstart a strong rally. The target price of this double bottom pattern stands at $0.483, which will represent a 74% increase from the neckline resistance level.

SEI has been trending for the past week, and despite an aggressive buying spree, the RSI on the higher timeframe shows that there is still room for more gains. This indicator stands at 54, a sign that the momentum governing the SEI price action is bullish.

Looming Short Squeeze May Spark Gains

SEI has recorded a significant surge in short positions in the last 24 hours, and this is evidenced by the funding rate heatmap. Per Coinglass data, SEI’s funding rate stands at -38%, which is at the lowest across the crypto industry. This signals a massive surge in demand for short positions, as futures traders bet that the rally could be on the verge of exhaustion.

This setup supports the bullish thesis for the SEI price forecast. When short positions become overcrowded but the price fails to show weakness, as the emergence of a double-bottom pattern shows, it could trigger a massive short-squeeze scenario. This will accelerate the upward trend for SEI.

Most of these short positions are already being obliterated. In the last two days, SEI has recorded more than $7 million in short liquidations, which has helped sustain the rally.

Therefore, SEI price, despite a 7% surge in the last seven days, still has room for more growth. The emergence of a double-bottom chart pattern and the looming short squeeze suggest that this altcoin could soon surge nearly twofold to $0.48 in the near term.