SEI's $0.20 Turning Point: Will It Trigger a Short Squeeze or Lead to a Volatility Pitfall?

SEI, the primary token of the

blockchain, is on the verge of a significant technical breakout above the $0.20 mark. Both analysts and traders are watching closely for a potential short squeeze and a sharp price jump. The token has been trading in a tight band between $0.18 and $0.19 for several weeks, leading to an accumulation of short positions just below $0.20. Should SEI maintain a move above this level, it could set off a wave of short covering, rapidly pushing the price toward $0.30 within a short period, according to .

Technical indicators highlight the importance of this price point. A

shows a gap between $0.21 and $0.29, suggesting little selling resistance in this area. This "low-resistance zone" could allow for a quick price climb if SEI surpasses $0.20, as traders expect swift price movement with few barriers. Market analyst Ali, recognized for spotting reversal signals, pointed out that the TD Sequential indicator—a tool used to identify trend exhaustion—has issued buy signals for SEI on longer timeframes. This matches the broader bullish trend, with RSI and MACD indicators pointing to fading bearish momentum and possible trend shifts, as noted by .

SEI's fundamentals are further strengthened by growing institutional involvement. The recent integration of Sei Network with Crypto.com Custody now offers institutional-level storage for SEI, making it more accessible to major investors. Additionally, upgrades such as the Giga protocol have increased transaction capacity, helping Sei reach over 13 million active addresses, as Coindoo also mentioned. These advancements establish SEI as a scalable Layer-1 blockchain suitable for DeFi and fintech, boosting its long-term prospects.

From a price structure perspective, SEI is forming a descending triangle, with $0.19 serving as a crucial support. Analysts caution that dropping below this level could see a test of $0.18, but holding $0.19 is vital for bullish momentum. A confirmed breakout above $0.22, especially with increased trading volume, could drive SEI to $0.24 and higher, with some forecasts suggesting a potential rise to $0.44 if accumulation continues, as outlined in

on the $0.19 support. Another details the scenario for reaching the $0.44 resistance level.

Current market dynamics also support a potential rebound. SEI's market capitalization of $1.22 billion and a 24-hour trading volume of $53 million indicate strong liquidity, while its circulating supply of 6.25 billion tokens (from a total of 10 billion) helps control inflation risk. Historical data shows that previous support zones, like the $0.18–$0.20 range, have often led to quick recoveries, strengthening the argument for a near-term rally; Live

News has reported similar rebounds, and CryptoFront has also emphasized the importance of these support levels.

Nevertheless, short-term risks persist. The heavy concentration of short positions near $0.20 means a failed breakout could cause volatility. Traders should keep an eye on trading volume and resistance points ($0.22, $0.25) to confirm any sustained upward movement. With institutional participation increasing and technical signals aligning, SEI's upcoming price action could reshape its standing among mid-cap altcoins.