SEI Cryptocurrency Surges 8.71% in 24 Hours Amid Bullish Patterns and Growing User Engagement

SEI, a prominent cryptocurrency, is exhibiting signs of a potential trend reversal following weeks of downward trading. Market participants are closely monitoring bullish technical patterns and improving fundamentals that could support a breakout. Analysts have identified increasing momentum, driven by technical structures and rising user engagement within the SEI ecosystem. Additionally, SEI's involvement in regulatory and infrastructure developments is attracting significant interest, suggesting that the cryptocurrency could be entering a new phase of growth.

Technical analysis indicates that SEI has formed a double-bottom structure, with key support at $0.168 and a neckline near $0.272. This pattern is widely recognized as a potential trend reversal indicator. Furthermore, a bullish flag pattern has developed, featuring an initial sharp rise followed by a descending channel, which often signals continuation. If SEI clears the neckline resistance at $0.272, analysts believe it could target $0.305. Currently, SEI is trading at $0.2038, reflecting an 8.71% increase in the past 24 hours and a 17.21% rise over the past week.

Crypto analyst noted that the asset’s weekly bounce mirrors a similar move from April, possibly forming a higher low and signaling the beginning of a larger “Wave C” phase. Fundamental indicators also point toward growing demand for the SEI network. Transactions on SEI surged by 30%, totaling over 35 million. Active addresses on the network doubled, reaching 7.6 million, indicating a sharp increase in user engagement. In the Web3 gaming sector, SEI ranked second, recording 2.5 million weekly unique active wallets and 29 million gaming transactions. In the DeFi space, SEI holds a total value locked (TVL) of $550 million and a stablecoin market cap exceeding $215 million. These figures place the token ahead of other chains in user engagement and liquidity.

SEI's expanding role in digital infrastructure has also strengthened its position. The Wyoming Stable Token Commission selected SEI to support the development of WYST, the first U.S. state-backed stablecoin. This move highlights growing institutional confidence in SEI’s capabilities and regulatory alignment. Additionally, SEI's integration with LayerZero has improved cross-chain functionality, boosting its reach across blockchain ecosystems. These infrastructure moves aim to enhance SEI’s visibility and usability across decentralized applications and services.

Reports suggest that large long positions were opened near recent lows, resulting in a 10% price bounce. Despite the upward move, funding rates remain deeply negative, indicating high short interest. Analysts believe this could set the stage for a more intense short squeeze if bears are forced to cover. Open interest remains elevated compared to other altcoins, suggesting that the current move might be early in its development.