Sei (SEI) Price Bounces From Critical Support, Will Uptrend Continue?
The Sei (SEI) price has bounced up from a crucial support zone and broken above a short-term resistance line. It is expected to continue rising in the near future.
The SEI price declined after reaching the yearly high at $0.32 on December 5th. This move brought the price back to a crucial support zone at $0.22, which acted as resistance for SEI at the time of listing.
On December 13th, the SEI price bounced up from the support zone (green arrow) and formed a fakey pattern. This pattern is considered a bear trap and is often followed by strong rallies.
The daily RSI (Relative Strength Index) created a bullish divergence and is above 50, supporting the potential for further upward movement.
Therefore, the SEI price could rise to the yearly high at $0.32 in the coming days. This represents a 26.33% increase from the current price.
Breaking above this level could help the SEI price rise to the next resistance level at $0.38, formed by the 1.618 Fibonacci extension of the recent downtrend.
Short-Term Resistance Line
The 4-hour chart shows that the SEI price has broken above a short-term resistance line, formed from the mentioned yearly high. This indicates that the previous correction has likely ended.
However, the price is currently facing a small horizontal resistance at $0.26. The 4-hour RSI has formed a hidden bearish divergence, not supporting the breakout.
Therefore, the SEI price may retest the previous short-term resistance line at $0.24 before continuing the upward trend.
Breaking above $0.26 will invalidate this short-term bearish outlook.
The most likely scenario suggests that the SEI price will continue to rise in the near future. The immediate target is $0.32, with further potential to reach $0.38.
This bullish perspective would be invalidated if the SEI price breaks down below the crucial support zone at $0.32 on the daily timeframe.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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