SEI Soars 25% After July Tumble, Eyes Key Resistance Levels For Potential Trend Reversal

Key Takeaways

• SEI hit a $1.15 high on March 15.
• Dropped to $0.23 on July 5, facing descending resistance.
• A potential breakout could target $0.50, signaling an uptrend start.

SEI Price Analysis 

On March 15, the price of SEI reached a high of $1.15, concluding its sustained uptrend from a low of $0.10 in October 2023. A downturn followed, forming a descending channel.

On April 13, SEI dropped to a low of $0.41 but quickly recovered to close at $0.48. By April 22, SEI had recovered to nearly $0.70 and retested its low on May 13. Finding support above $0.40, SEI experienced a 33% rise to $0.60, approaching its descending resistance.

However, SEI faced a rejection at the descending resistance, experiencing a further decline to a low of $0.23 on July 5. As the price increased to its descending resistance, a breakout could signal the onset of a major bullish trend. 

The daily chart RSI fell to 25% on July 5, signaling extreme oversold conditions, but recovered to nearly 40% since. Technical indicator MACD is just starting to show signs of a potential reversal as its moving averages converge positively. 

SEI Price Prediction 

Zooming into the 4-hour chart and examining the wave structure behind the last descending move from April 22, we see that it displays a five-wave pattern. This means it could have ended or is near completion. 

Since the price is starting to look bullish, establishing a slightly higher low of $0.24 on July 8 and rising over 25% since then, a breakout above the descending resistance could be expected. If this happens, we will receive the first confirmation of the starting uptrend, as this resistance was well respected from March 15. 

The next likely target would be at a horizontal resistance of $0.50, which could be the completion of the first sub-wave at a lower degree. We will receive the second confirmation if the rise continues to $0.50 and SEI makes a higher low above $0.30 on the expected downturn. 

However, the strongest sign of the starting uptrend that can bring SEI significantly higher would be a breakout above the $0.50 area. Should this play out, SEI could be ready to advance past its all-time high of $1.15 later in 2024 or the beginning of 2025.