SEI Price Spikes 28% Since Tuesday Low Breaking Key Descending Resistance

Key Takeaways

• Breakout from the descending triangle suggests trend reversal.
• Impulse wave developing, targeting key Fibonacci levels.
• RSI shows strong momentum, but overbought conditions could cause retracement.

SEI has recently broken out of a descending triangle structure, signaling a potential trend reversal.

The price has bounced from a key support zone, and early signs of an impulsive wave formation suggest a shift in momentum.

The 4-hour and 1-hour charts provide crucial insights into potential future price action.

SEI Price Analysis

The 4-hour chart shows SEI completing a complex WXY corrective structure, which led to a prolonged downtrend within a descending triangle structure.

The price found strong support around the $0.20 demand zone, aligning with the 1.0 Fibonacci extension.

This was the starting point of the previous rise, meaning that the price reverted to its August 2024 levels.

Historically, it acted as a key inflection point, which caused a new bullish phase. With its 28% increase since the interaction, it might cause another one. 

Following this, SEI staged a breakout above the descending triangle, confirming a potential bullish reversal, suggesting that SEI may have initiated a new impulsive wave structure. 

The 4-hour Relative Strength Index (RSI) confirms strong momentum, rebounding from oversold levels into the bullish zone.

However, the price is approaching the 0.786 Fibonacci retracement ($0.3168), which may act as temporary resistance. 

If SEI clears this level, we could see the next major target lies around $0.348 (2.0 Fibonacci extension), 

SEI Price Prediction

In the 1-hour timeframe, the impulsive wave count is clearly visible, with price action following a textbook five-wave Elliott Wave structure.

Wave (i) was confirmed with a strong push above $0.25, followed by a shallow wave (ii) retracement, which respected key Fibonacci support near $0.21.

Wave (iii) is currently developing, with initial resistance expected at $0.299 (1.272 Fibonacci extension). A minor pullback in wave (iv) could occur around the $0.28 level before the final wave (v) targets the $0.348 region, aligning with the 2.0 Fibonacci extension.

Momentum indicators suggest caution as RSI has entered overbought territory, meaning a corrective wave (iv) could materialize soon.

However, as long as price action remains above the $0.2136 pivot (previous wave (ii) low), the bullish outlook remains intact.

A confirmed breakout above $0.3168 (0.786 Fibonacci retracement) would solidify the bullish continuation scenario.

Conversely, a failure to hold above $0.25 could invalidate the impulsive structure and lead to further consolidation.

Key Levels to Watch

• Immediate Resistance: $0.3168 (0.786 Fibonacci retracement).
• Key Support: $0.25 (previous resistance turned support).
• Critical Support: $0.2136 (wave (ii) low).
• Short-Term Target for Wave (v): $0.348 (2.0 Fibonacci extension).
• Invalidation Zone: Below $0.2136.