fxstreet.com
- Sei network token has emerged as the biggest gainer, rising by 96% in the last seven days and 22% on Tuesday.
- Crypto influencers have compared this rally to Solana price, shooting up from $1.00 in 2021.
- The altcoin will, however, run out of steam before it can breach $0.30, potentially resulting in corrections.
Solana was known as the “Ethereum killer” when it skyrocketed back in 2021; however, it did not manage to kill the DeFi home in any way. Similarly, many altcoins have since emerged that have been denoted as Solana killers, but hardly anyone has managed to do that. This altcoin is probably going to fall in the same category.
Sei is not Solana
Sei network has been compared to Solana since it first came into the limelight following its launch but soon after lost that honor as the altcoin kept declining for the next two months. SEI only revived or, more appropriately, initiated an increase in the last four weeks.
Comparing it to early Solana, crypto influencer Johhny noted,
I think $SEI is on the verge of going parabolic towards .$70 over next few months
— Johnny (@CryptoGodJohn) November 28, 2023
A lot of comparisons to buying $SOL under $1 — I think this can be a top performing play alongside Solana
No VC unlocks until late 2024 —> faster, cheaper & narrative forming around it. pic.twitter.com/vhFn8oBnCq
However, this being the first instance of the altcoin posting considerable gains, and with the bullish momentum potentially waning, it is advisable to exercise caution before joining the trend.
Sei price rise grabs attention
SEI, the native token of the Sei network, observed a rather astonishing 22% rally in a single day on Tuesday as the altcoin touched $0.2845. This increase in price added to the ongoing rally over the last six days, bringing its one-week rally to almost 96%.
Up from $0.1410, SEI has risen to potentially touch $0.3000, and looking at the price indicators, it may seem like the market is still bullish, but in actuality, it is not. The consistent rally has resulted in the market overheating evinced by the Relative Strength Index (RSI) sitting in the overbought zone above 70.0.
SEI/USD 1-day chart
While many altcoins tend to still maintain bullishness despite breaching into the overbought zone, if the indicator crosses 80.0 in a bull market, it indicates the potential that the market exhausted the demand. Cryptocurrencies tend to decline soon after as the market cools down, which is met with corrections.
Thus, the Sei price might not see the $0.3000 this time around, but if the investors see potential in the coin, it could be able to revive the rally in the coming months.