- SEI breaks 27-day high amid DeFi growth and falling wedge breakout.
- Liquidity and funding boost confidence in SEI’s decentralized finance ecosystem.
The cryptocurrency market has been highly volatile since the start of the month, with Bitcoin hitting a 25-day high yesterday, sparking a brief surge. However, today the overall market has dipped, with total market capitalisation down 0.39% and trading volume dropping by 28%. Despite the red across most altcoins, one coin has stood out—SEI (SEI)—which saw a 5% increase in the last 24 hours, reaching a 27-day high of $0.3747.
Currently, SEI is trading at $0.3665, with its trading volume rising 28% in the last day. Over the past week, SEI has surged by 23%, largely driven by bullish technical indicators and developments within its DeFi (decentralised finance) ecosystem.
The upward movement follows a confirmed breakout from a falling wedge pattern, a bullish reversal signal often indicating a transition from a downward trend to an upward one. This breakout has sparked optimism among investors.
Moreover, the falling wedge pattern, marked by converging downward-sloping trendlines, was breached upwards, signaling a shift in momentum. Historically, such a breakout indicates further upward movement, suggesting that SEI’s previous bearish trend might be behind it. Beyond technical factors, SEI’s price surge has been bolstered by significant activity within its DeFi space.
Can SEI Maintain The Bullish Momentum?
While the technical breakout and increased liquidity have boosted SEI’s performance, analysts are keeping a close eye on resistance levels. The mid-range resistance at $0.32, tested on 15 September, held strong, preventing further gains. Yet, SEI’s bullish price action remains strong, with the daily RSI (Relative Strength Index) climbing back above 63, signaling buyer dominance. However, the OBV (On-Balance Volume) and CMF (Chaikin Money Flow) have yet to confirm a definitive buy signal, indicating some caution in the market.
However, recent macroeconomic factors, including the Federal Reserve’s decision to cut interest rates by 50 basis points, have improved sentiment across the market, providing further price support.
As it approaches its next key liquidity pocket at $0.43, investors are watching closely to see whether the token can maintain its momentum.
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