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SEI, the native cryptocurrency of the Layer 1 blockchain built for decentralized finance trading applications, joined the ongoing crypto market resurgence with a 24% pump in the past week. However, the cryptocurrency’s price action reveals a critical pattern, which most analysts believe could determine its future.
SEI’s Latest Pullback is Not a Random Move
One such analyst believes SEI’s latest pump, which saw the price surge from $0.111 to $0.135, occurred so quickly that it left late buyers limited room for a reaction. Subsequently, the digital asset reversed sharply after the surge, with an approximately 5% dump in a single candle, which extended further to about 9%, complicating issues for top chasers.
According to the analyst, the price rejection around the local top resulted from a convergence of multiple technical indicators, including a stacked resistance zone, FVG, Golden Pocket, trendline resistance, and value area high. These indicators converged around the $0.133-$0.136 price region, forming a reversal point for the price.
A SEI Bounceback is Possible Under Certain Conditions
Most analysts consider the latest pullback a momentum-building process. SEI will confirm this notion by creating a higher low and establishing a new support. That could materialize if the cryptocurrency holds the 50 RSI and the RSI trendline under the current conditions. Meanwhile, forming a second higher low will boost the cryptocurrency’s chances of breaking resistance and charting a new course under the current dispensation.
In his latest post, renowned cryptocurrency analyst Michael van der Poppe highlighted the importance of SEI sustaining its position above the 20-Day moving average and creating a higher low. According to the analyst, such a development will confirm the cryptocurrency’s readiness to push toward the target zone.
He noted that the crypto asset has significant momentum alongside notable liquidity, with massive short positions nearing liquidation. TradingView’s data reveals that SEI traded for $0.1233 at the time of writing.
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