The Layer-1 blockchain market is at a crossroads as market participants continue to assess certain important technical levels that could dictate the future path of several bullish altcoins into late December 2025. Technical analysts have been particularly focused on the SEI Network as they believe that this next phase of SEI may be pivotal. According to crypto analyst Michaël van de Poppe, SEI does show early signs of recovery following yesterday’s bounce action but needs more legroom to confirm an actual reversal. The critical battle is at the 20-day moving average where breaking above would be meaningful upward movement towards the $0.16 target zone.
Technical Setup Points to Crucial Testing Period
SEI is looking better after the bounce yesterday but still needs to gain more momentum in order to be getting actual momentum. Currently trading around $0.11, SEI faces a critical technical challenge. The token is currently consolidating within a range that the analyst recognizes as matching the low observed post-listing, indicating that this support level carries historical importance. Achieving a breakthrough above the 20-day moving average, with an initial target set at $0.16.
The 20-day moving average has been holding each of the bounces in check, serving as a barrier. The price of the asset is below each of the four main EMAs: the 20-day, 50-day, 100-day, and 200-day. This usually indicates a bearish trend in the short term. At the same time, the RSI currently sits at approximately 40, having recently risen from oversold levels of approximately 30 (this indicates that the trend is slowing to the downside). It could also signal the potential emergence of a bounce.
Momentum of Ecosystems although Weakly Priced
While the price action of SEI has been a disappointment for some investors, the fundamental developments of the network keep forging ahead. Most significantly, SEI announced a ground-breaking partnership with Xiaomi in early December that could increase its user-base dramatically. Millions of Xiaomi smartphone users will receive direct access to crypto through Sei, starting in 2026; new Xiaomi devices in the markets outside China and US will start shipping with a pre-installed Sei wallet and Web3 discovery app.
This integration removes the seed phrases using an MPC wallet with Google and Xiaomi ID login, removing one of the biggest adoption hurdles for first-time users. The partnership puts Satoshi to become a default crypto access layer for worldwide markets in the Android app ecosystem, and stablecoins payment is scheduled for 2026. To provide prospective Layer-1 blockchain applicants with some insights into potentially successful projects, Blockchain Reporter has listed the various promising applications in the DeFi and infrastructure segments that are picking up steam.
SEI recently experienced a 55.56 million token unlock on December 15 representing 1.08% of total supply reaching $6.93 million. Some analysts attribute the formation of this double bottom located near $0.13 to be a classic reversal formation, as the targets are potentially located at $0.58, should it follow through on the full move.
Conclusion
As SEI Network climbs to this technological inflection point, traders should have realistic expectations of the near-term price action. The cryptocurrency market has proven to be notoriously difficult to time, with false breakouts still being common in range bound conditions. For now, SEI is stuck in a holding pattern at important support levels where its future will be linked with technical resolution at the 20-day moving average and broader market sentiment. The fight at this critical level could prove decisive as one part of what could be an eventful maximum, as Xiaomi integration unfurls around the world.