SEI Price Retreats After 40% Hike — Bears Back in the Picture

Key Takeaways

• SEI is at risk of falling below its ascending channel — a move that could invalidate further short-term upside.
• The Bull Bear Power has flipped negative, suggesting a change in market dynamics as buyers lose strength.
• With Ichimoku Cloud and AO both turning bearish, SEI may slide below $0.21 and possibly test $0.19.

SEI, the native token of the Sei modular blockchain, rallied 40% to $0.27 on May 10. But the excitement didn’t last long.

Less than three weeks later, SEI has dropped back to $0.22, giving up much of its recent gains.

While dips like this can be part of a healthy uptrend, SEI’s latest price action suggests something else might be going on.

Bullish momentum appears to be fading, and buyers are struggling to regain control. Here’s what could be next for the cryptocurrency.

SEI Rally Fizzles

SEI’s early-month rally came on the heels of a proposal to cut Cosmos compatibility — a move that initially stirred bullish sentiment around the project.

However, with no final decision yet from developers, the initial hype has faded.  At press time, the bullish structure that drove SEI’s price surge has broken down.

On the daily chart,  SEI’s price is on the verge of falling below the upper trendline of the ascending channel.

If validated, this could completely erase the potential of a higher value in the short term.

Besides that, the Bull Bear Power (BBP) also revealed a change in the market dynamics.

The BBP, which measures the strength of buyers versus sellers, has slipped to the negative region, indicating that bullish momentum has weakened.

Now, sellers are beginning to assert control, adding to the signs that SEI’s uptrend has lost steam.

If this lingers, then SEI’s price will likely inch closer to its yearly low in the coming days.

Outside the technical outlook, on-chain data from Santiment confirms a growing wave of bearish sentiment around SEI.

Negative crowd reactions have started to build according to data from the weighted sentiment dipping into the red.

This position indicates that traders are increasingly skeptical about SEI’s short-term prospects, reinforcing the case for an extended pullback unless sentiment turns bullish.

SEI Price Analysis: No Bounce Expected

During the 4-hour timeframe, SEI’s price action also leaned in a bearish manner.

For instance, the Ichimoku Cloud has flipped above the altcoin’s current value, a sign that downward pressure is intensifying.

Typically, when the cloud is below the price, it indicates strong support, and the market value might increase.

However, in this case, SEI may continue trading below key resistance levels, with little sign of a bullish reversal.

In addition to that, the Awesome Oscillator (AO), which measures momentum, is down to the negative region. This decline reinforces the bearish sentiment around SEI.

Should this remain the same, SEI’s price is likely to drop below the underlying support at $0.21. If validated, the cryptocurrency’s value might slide to $0.19.

On the contrary, if buying pressure increases, SEI could rise past the upper trendline of the ascending channel mentioned above. Once that happens, the price might jump back to $0.27.