SEI surged 43% in 24 hours – What is driving the rally?

Layer-1 coin SEI rises to the sky the most in the market today, jumping over 43% in the past 24 hours. This double-digit increase occurs amid a surge in capital flowing into the Sei network — a sign that interest is returning from investors and new capital is flowing into the ecosystem.

SEI rises to the sky as the net inflow explodes

In the past 24 hours, Sei Network recorded the highest net inflow among blockchains, ranking in the top 4 in terms of assets bridged. Notably, SEI even surpassed major networks like Solana during the same period.

Top net inflows through bridges | Source: ArtemisAccording to data from Artemis, Sei Network recorded net inflows through bridges of 3 million dollars in the past 24 hours. Meanwhile, the leading network Solana had net outflows reaching 5 million dollars in the same period.

A sudden surge in capital inflow is a sign of increasing user activity, while also reflecting investors' confidence in the Sei ecosystem's recovery. According to this data provider, only Arbitrum, Base, and Ethereum recorded higher net inflows than Sei.

With the influx of capital into the network, the demand for SEI coin has also risen to the sky, clearly reflected in the Chaikin Money Flow indicator (CMF) – currently at 0.22, meaning the upward momentum is still significant.

! SEI CMF of SEI | Source: TradingViewThe CMF (Chaikin Money indicator Flow) measure the flow of money in and out of an asset. When this index has a positive value, it shows that the buying and accumulation force is outperforming the selling pressure from holders. Conversely, if the CMF is below zero, the market is under more selling pressure.

With SEI, the current CMF setup further strengthens the argument that this price surge is backed by strong demand and ample liquidity.

SEI outperformed the market during the adjustment period

At the time of writing, this altcoin is trading at its highest level in 4 months, reaching $0.28. In fact, while the overall market has been performing poorly over the past week, the price of SEI has risen to the sky by more than 70%.

With the inflow of capital continuing to rise and momentum indicators sending positive signals, this altcoin is likely to continue outperforming in the short term. If demand remains high, the price could aim for the $0.36 mark.

SEI Price Analysis | Source: TradingViewHowever, if demand declines significantly and profit-taking increases, the price may break the support level at $0.27 and drop to $0.23.

Dinh Dinh