SEI Down 10% as Price Struggles to Break Past $0.50 Resistance

Key Takeaways

• SEI peaked at $1.15 before a bearish reversal.
• Recent RSI shows oversold and overbought conditions influencing trends.
• A corrective ABC pattern may target $0.32 for support.

SEI’s price action has been marked by sharp fluctuations, with significant highs and lows throughout 2023 and 2024.

Despite some bullish momentum, technical indicators now point to a potential correction. This analysis examines recent movements and outlines future expectations.

SEI Price Analysis

On March 15, SEI peaked at $1.15, concluding a steady uptrend from a low of $0.10 in October 2023. However, this was followed by a downtrend, forming a descending triangle pattern.

By April 13, SEI hit a low of $0.41 but quickly bounced back, closing at $0.48. The recovery continued, with SEI reaching nearly $0.70 by April 22 before retesting its low on May 13.

After finding support above $0.40, the price climbed 33%, reaching $0.60 and approaching its descending resistance level.

Despite this upward momentum, SEI was rejected 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%, signaling oversold conditions, while the MACD indicated a potential reversal as the moving averages began to converge positively.

A new uptrend started, breaking above resistance and reaching a high of $0.42 on July 21. The subsequent decline led to a slightly lower low of $0.20 on Aug. 5, concluding this bearish phase. 

Since then, we have seen a recovery, leading SEI to a high of $0.52 on Sept. 29. The RSI reached overbought territory, so it declined to $0.38 on Oct. 8.

On Monday, Oct. 14, we saw a second attempt to surpass the $0.50, but it failed to do so, resulting in a 10% decrease.

We anticipate a further drop as the technical indicators show a bearish divergence. 

SEI Price Prediction

The one-hour chart reveals a five-wave pattern from the Aug. 5 low to its Monday high of $0.50. This was the first uptrend after a long-lasting bear cycle, and now, as it likely ended with wave 5 being truncated, we can anticipate the first bull phase correction. 

Considering the price decreased by 10%, more downside is expected, with its first target at around $0.38. After a bounce, SEI could make a lower high, validating the assumption of the larger corrective ABC developing. 

The Fibonacci retracement level of 0.618 perfectly aligns with the $0.32 horizontal support zone’s upper level, which is why this would be the optimal target for completing the ABC correction. 

If SEI goes there and makes an upturn, it could mean we saw the first two sub-waves of the higher-degree impulse, and SEI could be on a journey for a sustained bull phase afterward. 

Read more: SEI Price Prediction 2024: SEI Price Analysis