Key Points:
- SEI price jumped to $0.31 before crashing again to $0.29 after 21Shares filed for a spot SEI ETF with the SEC.
- Analysts are eyeing a short-term target of $0.345 and long-term predictions of up to $1.
- Despite the filing, SEI faces intense sell-side pressure in both spot and futures markets.
SEI price rose towards $0.31 on August 29, after 21Shares filed for a spot SEI ETF with the U.S. SEC. The announcement renewed interest in the altcoin, which had recently crashed to around $0.28.
This filing is expected to bring positive developments to the SEI network. It draws the token closer to institutional adoption.
Why the SEI ETF Could Be a Game Changer
First, a spot SEI ETF would track the CF SEI-Dollar Reference Rate and mirror the token’s price performance. According to the filing, Coinbase Custody will serve as the custodian. Also, the fund will work as a passive product without leverage or derivatives.
Another attractive feature is the option to include staking rewards. If approved, a portion of SEI in the ETF could generate even more returns for investors through staking. However, the sponsor must ensure no legal or tax risks are involved.
The SEC has been cautious about staking features in ETFs lately. Grayscale’s spot Ethereum products with similar features are still awaiting approval, and a ruling is expected by October. SEI ETF will likely face the same headwinds, but things appear favorable.
Analysts Expect SEI Price Breakout
Market analysts are optimistic about SEI. Ali Martinez highlighted that, as long as SEI holds above $0.288, it could climb to $0.345 in the short term.
Others believe SEI could revisit its 2024 high of $0.70 if strength continues to build. Martinez also noted in a separate post that a weekly close above $0.38 could send $SEI straight to $1.
Sei has strong fundamentals that support this price action. In June, the cryptocurrency saw a 368% jump in fee revenue, and its TVL surged to $611 million.
Bearish Pressure Clouds the Short-Term Outlook
Despite the optimism, SEI is struggling to attract buying interest. For example, data from Coinalyze indicates that sell volume has been more substantial for nine consecutive days than buy volume.
August 29 saw SEI with $32.59 million in sell volume versus $26.8 million in buys. This resulted in a negative delta of nearly -6 million. This persistent selling pressure has been an anchor around SEI’s price, which has pulled it back to $0.28 by press time.
Futures Market Sentiment Turns Bearish
The futures market also shows that confidence in SEI is waning. For example, Coinglass data shows that open interest dropped from $63 million to $54 million (a $9 million decline) in the last few months.
This indicates that traders are closing positions. At the same time, the aggregated funding rate across exchanges fell to -0.01%. It is showing a tilt toward short positions. This indicates that traders expect further price declines soon.
While the 21Shares ETF filing has brought attention to SEI, the token’s short-term price is still under stress. If the ETF creates stronger inflows for the asset, SEI could rebound toward $0.34 and even retest higher levels.
However, if bearish sentiment continues in both spot and futures markets, SEI could struggle to maintain its foothold. Traders should watch $0.288 as the most important support level, while $0.345 is the next resistance to break.
