SEI Breaks Out of Descending Channel Amid Bullish Technical Setup

SEI’s recent price action has positioned the asset at a critical juncture following a breakout from a mid-July descending channel. The price is now retesting the $0.33 level, historically significant as a Fibonacci retracement confluence point [1]. This retest is seen as a potential continuation signal for an uptrend that has been developing since April, when SEI hit a low of $0.1301. The move above the descending channel occurred after a sharp rally in early August, and the subsequent pullback aligns with a key technical support zone [2].

On the daily chart, SEI continues to form higher highs and higher lows, with all major moving averages reinforcing the upward momentum. The 7-day moving average is above the 25-day, which in turn is above the 99-day, indicating a strong short- and long-term bullish structure. Currently trading near $0.3208, the asset is hovering just above the 25-day moving average, with consolidation evident in the flattening of the short-term averages [3]. A sustained move above $0.39 could open the door to further gains, while a failure to hold $0.31 may see the price re-enter the old descending channel and weaken the bullish narrative.

The retest of $0.33 is viewed as a pivotal moment. A push above $0.36 could reinforce the bullish case and set the stage for a target of $0.39. Analysts have noted that the volume patterns during previous rallies—particularly in late June and early July—show strong participation, with a prior high of $0.3901 before a consolidation phase [4]. This suggests that the current move is part of a broader uptrend rather than a short-term bounce.

SEI’s chart structure also bears a striking resemblance to SUI’s breakout pattern before its surge to $4. The structural similarity is being highlighted as a sign that SEI may be entering a comparable phase, with potential for a rapid and extended upside move. While market conditions differ, the technical setup is viewed as a strong indicator of future potential [5]. A continued breakout could see the price follow a similar trajectory, with $4 as a projected long-term target.

Source: [1][2][3][4][5]

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