SEI Price Crosses $0.50 but Stays Below 45-Day Resistance – Can SEI v2 Debut Cause a Breakout?
Can SEI Price Reclaim 45-Day Resistance? | Credit: Derek Fenech
Key Takeaways
- The Sei v2 upgrade will go live on May 27 after a successful governance proposal.
- SEI broke out from a diagonal resistance but still trades below a horizontal one.
- Can SEI close May on a bullish note, or is a bearish reversal in store instead?
The SEI price has corrected over 50% since reaching its all-time high price of $1.14 on March 16. However, it regained its footing in April and broke out from the downtrend trend line in May.
Despite its breakout, SEI still trades below its main horizontal resistance area at $0.58. Since the price shows signs of starting an upward movement, it prompts the question: Can SEI continue its increase and reclaim $0.58, or will it fail to do so, invalidating the previous breakout in the process.
SEI Announces v2 Upgrade
After a successful governance proposal, the Sei Network announced that Sei v2 would go live on May 27. The upgrade aims to give the blockchain the best of both Solana and Ethereum.
SEI is currently one of the fastest blockchains , achieving finality at 380 milliseconds and processing over 12,500 transactions per second. This has all been achieved with zero downtime or blockchain outages.
However, developers working on the blockchain have requested more flexibility, especially relating to Ethereum Virtual Machine (EVM) compatibility.
The biggest change in v2 is backwards compatibility. Developers can redeploy every contract that exists on Ethereum without any code changes. This upgrade also speeds up how transactions are processed through optimistic parallelization.
Plus, it improves how data is stored and allows different parts of Sei to work together seamlessly. Overall, Sei v2 is faster, more efficient, and easier to use for developers and users.
As for the SEI price, while it shows positive signs, it has yet to break out from its main resistance area.
SEI Trades Below 45-Day Resistance
The SEI price had fallen under a descending resistance trend line since its all-time high price of $1.14 on March 16. The decrease led to a low of $0.41 on April 13.
After several failed breakout attempts (red icons), SEI created a higher low on May 14 and broke out the next day.
The breakout was preceded by a bullish divergence in both the RSI and MACD (green icon), signs that often lead to bullish trend reversals.
Despite the breakout, SEI failed to move above the $0.58 horizontal resistance area, which has existed for 45 days. Doing so will confirm the bullish trend reversals.
Technical indicators imply SEI will break out, since both are moving upward. A MACD increase above 0 and RSI increase above 50 alongside a price breakout will confirm the reversal.
SEI Price Prediction: Will the Price Break Out?
The wave count from the daily time frame SEI price chart supports a breakout. The wave count shows the price has completed a five-wave upward movement from October 2023 to March 2024. Wave five developed into an ending diagonal, hence the ascending wedge shape.
SEI has corrected since then. The April and May lows (green) happened right at the 0.618 Fibonacci retracement support level. So, the depth of the correction is sufficient to suggest the decline is over.
If this is indeed the case, the SEI price will break out from the $0.58 area and increase to the 0.618 Fibonacci retracement resistance level at $0.87. The reaction once it gets there will determine if the correction is over, or if the increase is just a relief rally before another drop.
SEI Likely to Increase Above $0.85
The SEI price has gradually increased since April, creating a higher low in May. The price broke out from a diagonal resistance, and the wave count implies a breakout from the $0.58 area is next.
SEI could increase all the way to the 0.618 Fibonacci retracement resistance at $0.88. The reaction once it gets there will be critical for the long-term trend.
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