#Sei SEI surges 25% as Canary’s 90% staking plan tightens supply – Can the rally hold?
Sei’s breakout is accelerating after weeks of failed attempts near $0.052. This suggests a shift from a consolidation phase to an upward momentum.
After weeks trading below the $0.052 resistance, buyers pushed the price of the token to $0.06285. In turn, the token gained over 25% in 24 hours. Daily volume surged alongside the price to $203.44 million, a 289% spike according to CoinMarketCap data.
This suggested broader market participation behind the move rather than just speculation.
However, the breakout price has risen well beyond the prior trading range. Therefore, this leaves very little support for Sei [
$SEI ] above $0.052. The RSI stood at 87.64, which also reinforced the imbalance, indicating that momentum has reached extreme levels.
Ultimately, even though the overall trend of Sei’s breakout remains bullish, buyers may find it difficult to sustain their recent gains. A hold at $0.052 will continue to validate the construction of the trendline, but another drop could put pressure on demand to absorb selling pressure.
Canary’s ETF targets sei staking
$SEI ’s sharp breakout is now being reinforced by a proposed ETF structure that could change how new demand affects supply. Canary Capital’s amended S-1 proposes staking roughly 90% of the ETF’s
$SEI holdings.
This could lead to the majority of tokens acquired through purchases being removed from open circulation. Currently there are approximately 4.2 billion tokens out of the total of 10 billion tokens, or approximately 42% of the circulating supply, that are already staked.
Hence, the ETF will also limit an already small number of available and tradable tokens rather than open up new avenues. Additionally, all future staking reward payments will go directly into the fund, thereby increasing the yield invested in
$SEI directly.
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