Sei Price Posts a 25% Gain, but Technicals Flash Bearish as the Crypto Approaches a Historic Barrier
The Sei price surged over 25% in the last 24 hours to trade at $0.334 at press time.
This steep rise in the SEI price has elevated the altcoin’s weekly performance back into the green. As a result, the crypto is up more than 11% over the past 7 days.
The Sei Price Trying To Break Above a Strong Negative Trend Line
4-hour chart for SEI/USD (Source: TradingView)
The Sei price was able to break out of a medium-term negative price channel in the last 48 hours, and then flipped the resistance level at $0.3185 into support. Now, the altcoin is attempting to break a major negative trend line, which has restricted SEI since June..
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Should the crypto overcome this significant technical barrier, it could attempt to overcome the $0.3670 threshold in the following couple of days. Continued buy pressure could push the Sei price to as high as $0.4137 in the short term.
On the other hand, SEI getting rejected from the major trendline could invalidate the bullish thesis. In this alternative scenario, the altcoin might drop back below the $0.3185 level. Thereafter, the Sei price could be at risk of retracing all the way down to $0.2845.
Technicals Starting To Show Bearish Signs
From a technical perspective, indicators on SEI’s 4-hour chart warn that the altcoin’s price has reached a peak. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators warn that a correction might be in the cards.
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RSI readings have started to drop in the last couple of hours. What’s more, the indicator’s current reading suggests that SEI is overbought. Traders generally see this as a sell signal because it indicates that a crypto’s downside potential is potentially greater than its upside potential.
Meanwhile, the MACD line has started to level off above the MACD Signal line. This could be an early indication of SEI’s positive trend coming to an end. Should the gap between these two technical indicators start to shrink, SEI could stand the risk of undergoing a reversal of its current bullish trend.
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