The SEI token of the SEI Network may well be moving into a significant accumulation stage, as the recent market movement has indicated a sharp recovery after a market-wide sell-off.
The weekly chart of the token, as analyzed by crypto analyst Michaël van de Poppe, indicates that despite the token moving below the 21-day moving average, a typical indicator of a short-term bearish trend, the token is still receiving support and is being accumulated.
The structure occurs against a background of volatility in the markets that has been fueled by tensions in the macroeconomic environment and shows signs that investors are preparing for a possible turn-around.
Market Drop Seen as Buying Opportunity
To start with, there was strong downward pressure in risk assets such as cryptocurrencies. This was because of worsening geopolitical issues. SEI was no exception as it fell below its 21-day exponential moving average (EMA), which is a point at which a token shows weakening momentum.
Nevertheless, rather than moving faster down, SEI’s price was promptly absorbed around significant support levels. The strong wicks seen on various timeframe candles indicate a reaction buy from market participants, which is a common indicator of absorption levels, where sellers meet demand.
Also Read: SEI Forms Bullish Reversal After Defending $0.116–$0.118 Demand Zone
Break of 21-Day MA Not Always Bearish
Although crossing below the 21-day EMA is generally considered a bearish signal, analysts warn against reading such signals in isolation. In environments that find themselves in accumulation phases, brief periods of crossing below dynamic averages can actually form part of healthy markets.
Such patterns can be indicative of short-term gains and stop-loss sweeps followed by a resumption of buying as traders spot value at lower levels. In SEI’s scenario, an immediate bounce following a pullback can indicate that traders find current levels attractive for purchase.
SEI’s Structural Support Holds
The chart passed on by the analyst shows that SEI has been respecting a wider support area in its pullback. This area has served as a structural floor several times in the past and suggests that the market is holding up at these points and not failing.
A defended support zone can be a characteristic of an accumulation phase, periods in which the buyer escalates their holdings in anticipation of the potential resumption of the trend.
Also Read: SEI Break Above $0.13 Could Trigger 20%–35% Recovery Toward $0.16
