The SEI blockchain uses the Layer 1 protocol to create an application for financial trades that has little latency and a high throughput. In recent months, the coin has experienced continued selling pressure due to an overall bearish sentiment present in the cryptocurrency market for many altcoins.
Price Compresses Near Key Support
The daily TradingView chart for SEI shows a continued downtrend; however, there is now evidence that the price is being consolidated short-term at the $0.10–$0.11 support area with multiple attempts made by buyers to defend it.
Indicators, such as the relative strength index (RSI), show an increase from Oversold to Neutral, indicating that Bearish momentum has started to ease. At the same time, the MACD histogram shows signs of flattening, which may indicate a potential short-term change in momentum, should buyers start to appear.
Also Read: SEI Price Analysis: Short-Term Breakout Puts $0.115 in Focus
Trend & Moving Averages: Overhead Resistance Remains Strong
On the TradingView chart, we can see that the coin is currently trading much lower than both the 50-day and 200-day moving averages. This indicates that the longer-term bearish structure of SEI is still present.
The first resistance line exists at the price range of approximately $0.129 to $0.138, where support once existed and is now being used as a source of supply. A daily closing price above this resistance level would be a strong sign that the trend is stabilizing and could provide a way for price recovery to the $0.15 price range.
Falling Wedge Points to Rebound Potential
According to the recent update on X by Crypto analyst Ali Charts, SEI is in a falling wedge pattern on the 105 (higher frequency) timeframe; historically, these structures are often associated with bullish market reversals.
As long as the price of SEI remains above $0.11, we believe there is a high probability of a temporary increase in prices toward $0.22. Therefore, this gives us a much stronger bullish view of the current phase, building from higher timeframes.
In conclusion, SEI is at a critical support zone and is also experiencing reversed price action since it is testing the major resistance level of around $0.11.
It does mean there is still downward pressure on the current trend overall, but the presence of bullish sentiment above key resistance and holding above key support could change the amount of bullish sentiment around potential future movement of SEI and possibly lead to a larger price reversal.
Also Read: SEI Price Prediction: Analyst Reveals Powerful Targets Up to $1.00
