SEI Token Surges 40.6% in 24 Hours on Wyoming Stable Token Commission Selection

SEI, the native token of the Sei Network, has recently experienced a significant surge in price, gaining 40.6% in the last 24 hours and 68% over the past week. This performance has outpaced many other tokens with similar or larger market capitalizations. The rally can be attributed to the network's selection by the Wyoming Stable Token Commission as a candidate blockchain for WYST, which has boosted bullish sentiment and the potential for a range breakout.

The price of SEI has been trading within a two-month range, but recent developments suggest that a breakout beyond the $0.3 resistance level is imminent. The heavy buying volume and strong, quick impulse move indicate that a breakout may be likely. A daily session close above the range high at $0.275 would be a positive sign for bulls, as it would confirm the breakout and potentially accelerate the price beyond $0.3.

The On-Balance Volume (OBV) indicator has cleared its March high, signaling a significant increase in buying pressure. This, coupled with the Relative Strength Index (RSI) highlighting intense bullish momentum, suggests that the bullish sentiment is strong. However, traders should be cautious of the negative funding rate, which implies that short positions have been paying the longs. This could indicate bearish sentiment and expectations of a bearish reversal.

The liquidation heatmap shows a dense pocket of liquidity at $0.29, which was recently swept. Meanwhile, the short-term local support levels at $0.27 and $0.26 have seen a build-up of long liquidations. This suggests that a price dip to revisit these levels may be a possibility. If the price dips to these levels, it could set up the next price move, either beyond $0.3 or a breakdown below $0.26.

Given the current market conditions, it may not be the time to FOMO into long or short positions. Instead, it could be a good time for SEI longs to take profits. A move beyond $0.3 or a breakdown below $0.26 could set up the next price move, and traders should be prepared for potential volatility.

In summary, SEI's recent price performance and technical indicators suggest that a breakout beyond the $0.3 resistance level is possible. However, traders should be cautious of the potential for a bearish reversal and the associated volatility. It may be prudent for SEI longs to take profits at this time, rather than FOMOing into new positions.