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SEI Price Forecast: Hype Around SEI ETF Could Trigger Rally to $0.50

Highlights:

  • SEI is trending towards the $0.327 resistance
  • A rally through the $0.327 resistance could see SEI hit $0.50 
  • Approval of the 21 Shares ETF could be the primary trigger for such a rally 

SEI (SEI) is relatively unchanged in the last 24 hours. At the time of going to press, SEI was trading at $0.302, up by a negligible 1.28% in the day. However, compared to the rest of the market, which is mainly in the red today, SEI is doing relatively better. SEI trading volumes are also on the rise during the day. They are up by 14.75% to stand at $215.9 million in the day. This indicates that buyers are coming in strongly and anticipating a price rally in the short term. The rising bullish sentiment around SEI has a solid basis to it. 

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21 Shares ETF Filing Sparks SEI Price Momentum

One of the factors driving the rise in bullish momentum for SEI is the possibility that an SEI ETF could soon become a reality. Cryptocurrency market analyst, 21 Shares, has announced that they have made an S-1 filing with the SEC for an SEI ETF. This is the second SEI ETF application by a major player. A similar one was made by Canary Capital back in April. All these applications are exciting the market because there is a growing institutional demand for SEI, and an ETF avenue could open the gates for a significant flow of capital.

SEI ETF, If Approved, Could Offer Staking Opportunities for Investors

A SEI ETF approval is also exciting because it will give investors access to staking opportunities. This is a big deal as both retail and institutional money looking for passive income opportunities could gravitate towards SEI. Additionally, the approval of an SEI ETF would be a big deal in terms of regulatory validation. Again, this could see SEI attract both retail and institutional money at a higher rate relative to other altcoins. It could see SEI price keep going up going into the future.

With all the benefits that could come with such an ETF, investors are also increasingly optimistic that it will happen. This is because policies have become increasingly pro-crypto since the Trump administration came to power. The SEC has taken steps that have seen billions of dollars in institutional money flow into the cryptocurrency market. As such, a significant percentage of investors expect an SEI ETF to be approved, and this could keep the momentum going. 

SEI Strong Fundamentals Adding to the Bullish Momentum

Besides the excitement around a possible ETF, SEI has some of the strongest fundamentals in the cryptocurrency market. SEI is one of the most competitive L1s known for parallel execution and fast transactions. The result is that SEI has found a strong use case in critical areas such as high-frequency trading. With all the chatter around the ETF, these use cases will get even more amplified, and SEI could see its future demand increase. This, and the macro environment now favors risk-on assets, could see SEI rally to new highs in the foreseeable future.

Technical Analysis – SEI Price Trending Towards Multi-Day Resistance

SEI is gaining upside momentum after rallying off the $0.279 support on August 25. If SEI sustains this momentum, the key level to watch would be the multi-day resistance at $0.327. A rally through the $0.327 resistance could see SEI rally to $0.50. 

SEI
Source: TradingView

A rally through this resistance could be particularly driven by the rising excitement around the potential approval of an SEI-ETF. However, if the ETF hype dies down and bears regain control, the odds are that SEI could retest the $0.279 support. However, due to an increasingly pro-innovation SEC, the odds are higher for a rally through the $0.327 resistance.

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