Will It Spark a Breakout to $0.25?

• SEI is down over 2%, currently trading at around $0.17.
• The asset may be approaching the end of its consolidation phase.

With the 1.32% slip in the crypto market, the majority of the assets are flashing red. The bearish fear is intensifying, as the fear and greed index value is at 25, facing additional losses. The largest asset, Bitcoin (BTC), is hovering at $102.8K, while the largest altcoin, Ethereum (ETH), trades at $3.4K. Among the altcoin pack, SEI has posted a decrease in value of over 2.83% in the last 24 hours. 

The asset kicked off the day trading at around $0.1821, and as the SEI bears showed up, the price depreciated to a bottom of $0.1696. At this point, a recovery is possible without much effort if the potent bulls stepped in. As per CMC data, SEI is currently trading within the $0.1766 zone, with its market cap at $1.1 billion. Significantly, the daily trading volume reached $114.1 million. 

An analyst’s chart exhibits that SEI appears to be approaching the end of a consolidation phase after a prolonged downtrend. The TD Sequential indicator has flashed a macro buy signal, signalling that the current price level could be a potential bottom. Expansion to a wider investor base could provide upward momentum, making the outlook bullish. 

Is SEI Heading for Further Losses or Does a Reversal Loom?

The Moving Average Convergence Divergence signal lines are below the zero line, which indicates that SEI is in a bearish zone. Even if the MACD crosses above the signal line, the bullish signal is less reliable until both lines move above zero, as the overall trend is negative. SEI’s Chaikin Money Flow (CMF) indicator at -0.10 suggests selling pressure in the market, giving a moderate bearish signal. A negative value means money is flowing out of the asset, and the lower it goes below zero, the stronger the selling pressure. 

SEI’s Bull-Bear Power (BBP) reading of -0.0005 points out a slightly stronger bearish pressure. Since it is very close to zero, the bearish momentum is weak, not very strong. This is taken as a mild downward bias rather than a strong sell signal. Moreover, the asset’s daily Relative Strength Index (RSI) is positioned at 48.78, implying a neutral market sentiment. Also, there is a balance between the buyers and the sellers, with no strong directional bias. 

As the ongoing momentum is bearish, the SEI price might fall to its crucial support at the $0.1756 range. Upon the downward correction gaining more power, the bears could initiate the death cross to take place. Eventually, it may trigger the price to drop further below the $0.1745 zone. 

Conversely, if the bulls take control and reverse the SEI market momentum, the price could immediately rise toward the $0.1776 resistance level. With the bullish pressure amplifying, the bulls might invite the golden cross to unfold, and would likely drive the price above $0.1787.