SEI Surges 12.56% in Short Squeeze, Reclaims $0.14 Amid Market Consolidation

The Sei (SEI) token experienced a sharp price recovery, surging 12.56% to approximately $0.14 after a rapid short squeeze. The move followed a sell-off that drove the price down to the $0.12 region, sweeping liquidity below previous lows and triggering long liquidations. This created an oversold environment, which was quickly reversed by a strong vertical breakout.

Open interest data mirrored the squeeze dynamic, initially increasing during the decline before stabilizing around 53.85 million as short positions were forced to cover. The breakout was backed by significant volume, with 24-hour trading volume surging above $100 million to reach $113.73 million, indicating real market activity rather than a low-liquidity anomaly.

Despite the short-term bullish momentum, SEI remains within a broader medium-term downtrend, consolidating near the lower boundary of its $0.07–$0.39 range. The token is currently testing a key resistance level at $0.1426, which aligns with a descending trend line on the 12-hour chart. A solid support base has been established at $0.1211, limiting downward movement during recent consolidation phases.

Technically, the asset shows signs of short-term stabilization. The MACD indicator hints at early bullish pressure, though it lacks a confirmed crossover, while the Chaikin Money Flow (CMF) remains negative, signaling continued capital outflow. SEI has also demonstrated relative strength against Bitcoin (BTC), gaining 6.4% over the past week, which supports its short-term trading stability. Market participants are closely watching the interaction between price, the $0.1426 resistance, and the descending trend line for signals of a potential decisive breakout or reversal.