SEI, the layer-1 modular blockchain Sei token, has finally broken free from its prolonged downtrend. The price surged by 20% within the last seven days, a decisive move that signals renewed bullish momentum.
SEI trades around $0.27 at press time, which still represents a 76% drop from its all-time high. With buying pressure increasing, this analysis checks the critical price zones to confirm if this recovery has more room to run.
Falling Wedge Breakout Drives SEI Surge
In December, SEI’s price rallied to $0.70, hinting at a return to $1. However, since that peak, the altcoin has been hitting lower highs and lower lows till it reached $0.22 earlier this month.
Meanwhile, this price decline caused SEI to form a falling wedge on the daily chart. A falling wedge is a bullish chart pattern formed by two converging descending trendlines.
One connects the lower highs, while the other links the lower lows. Typically, it signals a potential breakout to the upside. According to the chart below, SEI’s price rally to a top of $0.27 happened because it broke out of the wedge pattern.
Furthermore, the Relative Strength Index (RSI) has risen above the 50.00 neutral area, indicating that SEI’s momentum is no longer bearish.
Apart from the RSI, the Moving Average Convergence Divergence (MACD) has risen to the positive region. Like the RSI, the MACD also measures momentum.
In addition, the 12-day Exponential Moving Average (EMA) has crossed above the 26-period EMA, validating the bullish outlook. If this trend continues, then SEI’s price increase is likely to continue.
SEI Price Targets Higher Levels
Zooming into the daily chart again, CCN observes that SEI has broken above the 20 EMA (blue). The 20 EMA is a major indicator that predicts the trend around an asset.
When the price falls below the 20 EMA, the trend is bearish. But since it is the other way around, SEI’s price looks to be moving toward sustaining the recent double-digit rally.
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Besides that, the token is also on the verge of testing the 50 EMA (yell0w), which is near the 0.786 Fibonacci level. If this happens, SEI could reach a higher value in the short term.
The Fibonacci levels provide further insights into the potential targets. As it stands, SEI is likely to breach the 0.786 resistance at $0.31.
If that happens, then the cryptocurrency’s value climb to $0.40. If buying pressure increases at this level, the token might rally to $0.53.
On the flip side, this prediction might be invalidated if the cryptocurrency falls below the 20 EMA. In that case, the price could decline to $0.19.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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