Sei’s Bullish Outlook Put to the Test by 20% Loss: Can It Hold Ground Above $0.3 Support?

Key Takeaways

• SEI’s recent performance has deviated from our previous analysis.
• The price has ended its initial uptrend and may decline further.
• A potential uptrend remains possible but requires confirmation above the $0.33 support level.

In our previous analysis, we predicted an uptrend in SEI’s price, particularly following the July 5 low.

However, recent market movements have led to a decline in SEI’s value , challenging our initial outlook.

Now the question remains: will the current downtrend confirm or disprove our previous bullish prediction as SEI tests critical support levels and technical indicators signal potential outcomes?

SEI Price Analysis

On March 15, the price of SEI peaked at $1.15, marking the end of a steady uptrend from its low of $0.10 marked in October 2023. However, the price then began to decline, forming a descending triangle. 

On April 13, SEI reached a low of $0.41 before quickly rebounding to close at $0.48, marking a reversal. By April 22, the price had risen to $0.70 but later retested its low on May 13. Despite this, SEI found support above $0.40 and rallied 33% to $0.60, nearing its descending resistance level.

By July 5, SEI faced rejection at this resistance, dropping to a low of $0.23. The daily chart’s RSI fell to 25%, indicating extremely oversold conditions, while the MACD signaled a potential reversal with its moving averages converging positively.

Despite this, SEI faced rejection at the descending resistance, dropping to a low of $0.23 on July 5. The daily chart’s Relative Strength Index (RSI) fell to 25% on July 5, indicating extremely oversold conditions and setting the stage for a potential reversal. Concurrently, the Moving Average Convergence Divergence (MACD) indicator exhibited a bullish signal as its moving averages converged positively.

Following the July crash, a new uptrend began, leading to a breakout above the resistance to a high of $0.42 by July 21. The subsequent decline is seen as the first bullish correction in a larger upward move, but further confirmation is needed.

SEI Price Prediction

A closer look at the 1-hour chart reveals a five-wave pattern developed by a three-wave move. These were expected to be the first two sub-waves of a higher-degree five-wave impulse. SEI is currently testing its 0.5 Fibonacci level at $0.33 and could find support there, especially as this area served as support from mid-June to the beginning of July. This is 21% lower than its recent high and could lead to more downside. 

However, there are still no signs of a reversal, and it could continue to its next significant Fib level of 0.681 at $0.30. If the price goes below this level, the possibility of a starting uptrend from July 5 would be very slim, and it would be completely invalidated if it went below $0.23.