Key Takeaways
Even though SEI has fallen over 60% since the all-time high of $1.145 in March, the price started an upward movement in August.
The increase caused a breakout from a diagonal and horizontal resistance level, creating optimism that the price has begun a bullish trend reversal.
Let’s analyze the SEI price action and see what the breakout means for the future trend and what the targets are for the next upward movement.
The SEI price has increased since falling to a low of $0.202 in August. Shortly afterward, it broke out from a descending resistance trend line that existed for 217 days. Breakouts from such long-term resistances often indicate that the correction has ended.
Then, SEI confirmed this by moving above the $0.40 horizontal area and validating it as support this week (white icon).
If SEI continues to increase, the next resistance will be $0.60. This is the final horizontal resistance area before an all-time high.
Technical indicators show bullish signs, but they have not confirmed the breakout yet. The Relative Strength Index (RSI) is increasing but is still at 50, while the Moving Average Convergence/Divergence (MACD) is trending upward but is below 0.
While the price action and indicator readings are not decisive, the wave count gives an extremely bullish SEI price prediction. The most likely wave count suggests the price completed a five-wave increase and A-B-C correction (black) between October 2023 and August 2024. Then, it likely started another five-wave increase.
If both upward movements have the same length, SEI will reach a high of $1.26 in the current cycle. This would be an upward movement of nearly 210% from the current price.
Before getting there, SEI will possibly face resistance at the $0.60 horizontal resistance area and the $0.78 resistance created by the 0.618 Fibonacci retracement level. However, the SEI price has likely started to increase in the long term.
The long-term breakout and reclaim of a horizontal area bodes well for the future SEI price trend, indicating that an upward movement toward new highs has started.
The wave count aligns with this bullish reading, suggesting the SEI price will increase by over 200%. Initially, SEI will likely face resistance at $0.60 and $0.78.