Sei [SEI] is on track to hitting 30% recovery gain in June after recently hitting an all-time low of $0.044. Initially, the relief rally was triggered by Bitcoin’s bounce from sub-$60K in early June.
However, SEI decoupled from the king coin and forged ahead while Bitcoin [BTC] posted new losses in the past few days. In the past two days, SEI rallied 12% and traded at $0.058 as of writing.
Over the same period, BTC briefly slipped below $60K again and was barely staying above the key psychological level. This meant SEI’s rally was fueled by other ecosystem catalysts to decouple from BTC’s weakness.
Can SEI’s rally extend above $0.06?
Worth pointing out that BTC’s recent drop occurred ahead of key U.S inflation data that could confirm or ease last week’s Fed rate hike fears. As such, if the inflation comes in hotter-than-expected, then investors adopt another risk-off mode.
If so, SEI’s rally could stall at the immediate overhead hurdle at $0.06 (red zone).
On the contrary, a softer inflation print may calm the fears and renew the risk-on appetite.
In such a scenario, bulls may push SEI to clear the $0.06 hurdle. If the resistance is turned into strong support, then $0.07 could be the next bullish target. That would be a potential 12% upside if inflation data comes in softer than expected.
Will another short squeeze push SEI higher?
The latest rally was influenced by a short squeeze for the upside liquidity by leveraged bears. Notably, for the past 10 days, leverage short sellers opened positions eyeing near $0.06 (bright zones).
In most cases, these liquidity pools tend to act as price magnets during volatility. And this is what happened in the past two days, driving the price towards $0.06.
But another liquidity pool was parked at $0.07 and has been steadily building since late May. Another short squeeze could likely lift the price higher to the target.
That said, the hype around Sei’s Giga upgrade, aimed to make the chain faster and more privacy-focused, could also have acted as a bullish catalyst for the June rally.
Overall, SEI is part of the broader altcoin market that has seen significant seller exhaustion after printing new lows.
However, the U.S inflation data and subsequent risk appetite will determine if SEI extends its 30% recovery gain or not.
Final Summary
- SEI defied Bitcoin weakness and posted a 30% recovery rally in June.
- There was still a chance for an extra 13% upside move, but only if the U.S inflation data favors bulls.
