SEI breaks out of falling wedge: is a major shift underway?

$SEI has finally broken free from a prolonged falling wedge pattern, marking its first higher high in weeks. A key technical retest now sets the stage for a potential bullish continuation.

$SEI ($SEI) had been trapped in a falling wedge structure for an extended period, consistently printing lower highs and lower lows, classic signs of a downtrend. However, a recent breakout has shifted the narrative. For the first time in weeks, $SEI has posted a higher high, indicating a technical reversal and suggesting the early stages of a new bullish market structure.

Key technical points

• Bullish Breakout: $SEI has broken out of its falling wedge and confirmed a higher high, suggesting bullish reversal.
• Retest Zone: Price is expected to revisit the 0.618 Fibonacci retracement at the value area low to form a higher low.
• Upside Potential: If a higher low is confirmed, a move to the range high could offer an 80% upside from current levels.

SEIUSDT (1D) Chart, Source: TradingView

Detailed analysis

The falling wedge pattern that constrained $SEI for several weeks has finally given way. With the breakout, price action not only escaped the downward sloping resistance but also managed to set a higher high, a move that confirms a potential shift in market structure from bearish to bullish.

What comes next is equally critical. For the breakout to be validated and sustained, $SEI must now establish a higher low, ideally near the 0.618 Fibonacci retracement, which aligns with the value area low of the current range. This area is a prime zone for support and represents a technical sweet spot where bullish momentum could resume if buyers step in.

Volume behavior will be a critical element to monitor. A rise in volume would support a bullish continuation and suggest growing confidence in the breakout. In contrast, a lack of volume may hint at a failed breakout or weak trend strength.

If $SEI can hold this potential higher low, the upside opens up dramatically. The range high becomes the next logical target, offering nearly an 80% move from the current region. This would place the asset in a much more bullish context and could attract additional attention from market participants.

What to expect in the coming price action

$SEI is at a technical crossroads. A successful retest and higher low at the 0.618 Fib zone would confirm a new bullish structure and open the door for a major leg up. However, failure to hold this zone could invalidate the breakout and return price to previous range lows. Keep a close eye on volume and structure development as the next few candles unfold.