Key Takeaways
- SEI’s price has surged by 38% in the last 30 days, amid a new proposal to transition away from the Cosmos.
- The project proposes replacing Cosmos with EVM compatibility to enhance the user and developer experience.
- SEI has broken out of a descending channel, with bullish momentum suggesting it could break the $0.26 resistance.
SEI, the native coin of the layer-1 blockchain Sei Network, extended its 30-day rally to 38% today, climbing to $0.21. The surge comes amid a new community proposal to end support for the Cosmos architecture currently underpinning the network.
Cosmos’ native cryptocurrency, ATOM, held steady despite the proposal, posting gains instead of losses.
In this analysis, CCN reveals why the Sei community advocates for this structural change, the alternative blockchain architecture it plans to adopt, and what it could mean for SEI’s price trajectory going forward.
Sei Coin Climbs, Project Wants to Switch
According to Sei, the proposed shif t is driven by a decline in Cosmos network activity, particularly a drop in transaction volume and weakening developer engagement with CosmWasm, its innovative contract framework.
To replace Cosmos, Sei plans to transition fully to an Ethereum Virtual Machine (EVM)-compatible ecosystem. The project stated that adopting full EVM compatibility would streamline infrastructure demands and enhance the user experience.
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However, the proposal is still pending community approval. Sei has scheduled a community discussion for May 14 to address the transition in detail before it holds any final vote.
Following the development, SEI’s price broke out of a descending channel on the 4-hour chart. Earlier on, the altcoin’s price had fallen from $0.22 to $0.19.
But after a 6% rise today, it has reclaimed $0.21. On the same chart, the Relative Strength Index (RSI) has climbed to 63.20, indicating rising bullish momentum.
If this momentum remains bullish, then SEI’s price might break the upper-level resistance on the chart.
Concerning the recent development, Jayendra Jog, co-founder of Sei Labs, explained that its decision to build a fast, developer-friendly blockchain could be hindered by Cosmos, which he believes might be slowing down Sei’s progress toward this goal.
“Nearly all of Sei’s current activity is EVM activity, and that trend is on track to continue for the future. As a result, we propose SIP-3, which represents a strategic architectural decision: concentrating fully on Sei’s parallelized EVM,” Jog posted about the matter on X.
SEI Price Prediction: Rally Could Continue
On the daily chart, SEI’s price has surged above the upper trendline of the descending triangle. Amid this breakout, SEI’s price has also hit higher lows, indicating that the bullish trend might continue.
The Chaikin Money Flow (CMF) has risen to 0.08, indicating that accumulation has outpaced selling pressure. If this remains the same, SEI’s market value could surpass the resistance at $0.26.
Once validated, the altcoin could climb to $0.36 at the 0.618 Fibonacci level in the short term. Otherwise, if the CMF drops below the zero signal line, this prediction might not pass.
In that scenario, SEI could decline below $0.15, possibly hitting a new yearly low.
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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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