Sei, a layered blockchain designed to optimize trading, recently surged by over 22%, challenging the $0.4181 resistance, an area that has been intact since July 22. This resistance point has historically proved formidable for the token, but with the recent surge, the project now sets its sights on the $0.60 mark as the next major target.
SEI Breaks Above $0.4181 Barrier
Data from TradingView’s daily chart shows that SEI’s price uptick can be attributed to a 5-day bullish streak that was first piqued on September 17. This optimistic sentiment, reflecting more than 49% gain, resulted in a breakout above the $0.3675 barrier adjacent to the 50% Fibonacci level, hinting at a break of structure (BOS) scenario.
Typically, this pattern occurs when a market surpasses its previous peak in an uptrend or falls below a prior bottom in a downtrend, indicating the continuation of the current trend. In SEI’s scenario, the token presented a bullish continuation in the short term. True to its nature, the altcoin’s price action demonstrated resilience and strength as it pushed past the key resistance level at $0.4181, solidifying its upward momentum.
Despite this massive price uptick, the token has faced another resistance around the 78.6% Fibonacci level at $0.4756. This has resulted in a modest pullback as its value settles above the $0.45 support level. SEI trades at $0.4603 at press time, marking a 10.79% gain in a single day. In comparison, its intraday market cap surged to $1.622 billion, while its 24-hour trading volume recorded a massive 149.85% increase to the $519.721 million threshold.
Technical Indicators Hints at a Bullish Continuation
SEI’s moving average convergence divergence hints at a bullish continuation in the short term. This is evident as the MACD line recently crossed with the signal line. Currently, at 0.0324, the MACD indicator implies a solid buying momentum for the cryptocurrency. Further cementing this bullish strength is the MACD’s histogram chart, which shows its green bars widening above the zero line.
Adding to this bullish sentiment, the Chaikin Money Flow index portrays strong upward momentum with a reading of 0.24. This suggests an influx of money inflow in the cryptocurrency market, supporting the potential for further price appreciation in the short term. Moreover, on-chain data reinforces this sentiment.
Data from CoinGlass show that SEI’s bears have been liquidated in the last 24 hours, with a massive $1.35 million short positions being closed and only $882.53K long positions facing the same wrath. The OI-weighted funding rate also increased by 0.0092% within the same period, revealing that long-position holders are willing to pay a premium to keep their positions open.
However, caution is advised as the RSI index currently hovers around overbought conditions. Posited at 74.98, the asset may be due for a correction soon.
Is a Surge to $0.60 Possible?
Given the current market conditions, the SEI token could experience a surge to the psychological $0.60 level. However, a break above some vital barriers is necessary to sustain such a move. For instance, a rise above its present barrier at $0.4756 could push the cryptocurrency to challenge its next hurdle around the $0.5648 zone, last touched on July 7.
The success of this move could further propel the cryptocurrency toward the $0.60 mark, a key psychological level that could attract more buyers and momentum. Conversely, a shift in momentum could lead to a short-term market correction, pulling the token to retest its new support level at $0.4181, the previous resistance. Nevertheless, should this level falter, a 50% Fibonacci level drop at $0.3486 is imminent for potential support before the token attempts another bull run.
Also Read: Will Shiba Inu’s SHIB Hit $0.00003? Analysis Hints at Breakout
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