SEI Price Hits Critical Resistance Zone as Pullback Risks Start to Increase

Sei (SEI) has emerged from a prolonged corrective decline, signaling a potential macro bottom after completing a complex W-X-Y-X-Z pattern.

Current price action shows a strong bullish structure, with early impulsive signs visible on lower timeframes.

However, SEI is approaching a key supply zone, suggesting the need for caution in the short term.

SEI Price Analysis

On the 4-hour chart, SEI completed a large corrective phase, bottoming out at around $0.13 on April 7.

The corrective decline unfolded within a broad descending wedge, which was broken to the upside in early April.

Since then, SEI has steadily climbed, challenging the previous key support-turned-resistance zone between $0.20 and $0.22.

The Relative Strength Index (RSI) shows a firm recovery, reaching bullish territory without yet flashing extreme overbought conditions, which supports continued upside potential.

However, price action is nearing the upper boundary of a large supply zone and the wedge breakdown retest area.

Sustained closes above $0.22 would fully confirm the breakout, targeting much higher levels, while rejection from this zone could lead to another retest of the $0.1980 or $0.1920 levels.

The medium-term structure leans bullish as long as SEI holds above $0.1920, but immediate caution is warranted due to the resistance overhead.

SEI Price Prediction

The 1-hour chart displays a developing five-wave impulsive sequence from the recent low.

SEI completed waves (i), (ii), (iii), and (iv), with wave (v) currently unfolding. Price pushes into the $0.2178 zone, the 1.0 Fibonacci extension of the previous wave (i).

Given this structure’s impulsive nature, a potential short-term target for wave (v) lies between $0.2178 and $0.2317 (the 1.272 Fib extension).

Further room toward $0.2495 is also a possibility if bullish momentum persists.

However, RSI is flashing overbought on the 1-hour chart, suggesting that after completing wave (v), SEI might enter a corrective A-B-C pullback.

It is near the resistance confluence zone, where ascending triangle resistance, horizontal zone resistance, and Fib levels intersect around $0.22.

Should we see a rejection, the price would be expected to make a pullback targeting values around $0.16.

A clean breakout above $0.2178 with volume would indicate strong bullish continuation toward $0.2317–$0.2495.

If rejection occurs, the key to maintaining the uptrend is holding above $0.1982, the golden pocket of the recent rally.

The bias remains bullish in the immediate term, but close attention is needed as SEI navigates heavy resistance and overbought conditions.

Key Levels to Watch

Major Support: $0.1982 (0.618 Fib), $0.1921 (0.5 Fib), $0.1786 (0.236 Fib)
Immediate Resistance: $0.2178 (1 Fib extension), $0.2317 (1.272 Fib extension), $0.2495 (1.618 Fib extension)
Breakout Confirmation: Sustained move above $0.2178 with strong volume.
Invalidation Level: Dropping below $0.1921 would invalidate the immediate bullish setup.
Fractal Watch Zone: $0.2317–$0.2495 (potential extension of wave (v)).

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.

Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.

Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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