SEI set to explode? possible bullish breakout brewing after 9% dip

After a sharp 9% correction, technical indicators and market sentiment suggest that a bullish SEI price breakout may be in the making.

Despite the recent dip, SEI continues to trade near a key support zone, signalling that bullish momentum could be quietly building beneath the surface.

SEI holds steady near critical support

SEI’s price decline to $0.259 comes after a strong rally earlier in the year, which saw the token peak near $0.74 in late 2024.

Although the recent drop initially raised concerns among investors, SEI has managed to hold above its 200-day Exponential Moving Average (EMA), a level that historically acts as dynamic support.

Furthermore, the 50-day EMA at $0.2216 is forming strong secondary support, cushioning the asset from deeper declines and reinforcing bullish sentiment among technical traders.

SEI price chart | Source: TradingView

Price action has also respected a broader support range between $0.2216 and $0.2610, which could prove critical in determining whether a reversal is underway.

If SEI continues to hold this range, market analysts believe it could spark a new wave of buying pressure and potentially trigger a breakout toward higher levels.

Symmetrical triangle signals imminent breakout

A symmetrical triangle formation is now visible on SEI’s daily chart, and many traders are interpreting this as a classic continuation pattern.

This setup, forming after a period of consolidation, suggests a buildup of momentum as bulls and bears fight for control near the support base.

Technical analysts are closely watching for a breakout from this structure, with the ideal entry zone between $0.2309 and $0.1524 presenting a strong risk-to-reward profile.

Should the pattern break to the upside, price targets have been projected at $0.5256 and $1.1559, which would represent significant upside potential from current levels.

Such a breakout would likely coincide with renewed investor optimism and increasing on-chain activity, both of which are already surfacing.

Momentum indicators remain positive

Despite the pullback, SEI’s momentum indicators remain surprisingly resilient, with the Relative Strength Index (RSI) hovering at a neutral 54.

This positioning implies that the asset is neither overbought nor oversold, allowing for greater flexibility in price movement without major resistance from either side.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains above the zero line, reinforcing the view that the medium-term trend still favours buyers.

Traders are now watching closely to see whether the MACD line continues to diverge positively, which would offer a more decisive confirmation of a bullish reversal.

If these technical signals persist, the stage could be set for a strong rally that reignites bullish momentum.

Catalyst incoming as sentiment builds

Social sentiment surrounding SEI has also turned increasingly optimistic, providing yet another layer of potential fuel for a breakout.

On-chain data shows that active addresses have surged by over 13% in the past month, indicating growing user engagement with the Sei network.

The bullish tone has been amplified by the news that the Japanese Financial Services Agency (JFSA) may soon approve SEI listings on Japanese exchanges.

This expected regulatory approval could trigger a fresh wave of demand from institutional and retail investors in Asia, particularly in a market known for reacting positively to listings of emerging Layer-1 projects.

With positive fundamentals aligning with bullish technical patterns, the market is closely eyeing SEI for signs of the next major move.

SEI price levels to watch

Looking ahead, resistance at $0.3369 remains the next critical hurdle for SEI to overcome in the short term.

A confirmed breakout above this level would open the door to a sustained bullish trend and possibly new highs for the token in the weeks to come.

However, if SEI slips below the $0.2259 support, traders may need to reassess the bullish outlook and monitor for a potential deeper correction.

For now, the confluence of technical strength, social buzz, and looming catalysts suggests that SEI could be preparing for a major breakout, and traders are watching with keen interest.

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