SEI Cryptocurrency Tests Key Support After 79% Breakout

SEI, a prominent cryptocurrency, has recently experienced a significant price movement, testing key support levels after an impressive 79% breakout. This development has sparked considerable interest among investors and analysts, who are now debating whether the bulls are poised for another push.

The cryptocurrency market is known for its volatility, and SEI's recent performance is a testament to this. The 79% breakout indicates a strong bullish sentiment, but the subsequent test of key support levels suggests that the market is still uncertain about the direction of the price. This uncertainty is a common occurrence in the cryptocurrency market, where prices can fluctuate wildly based on a variety of factors, including market sentiment, regulatory developments, and technological advancements.

Investors are closely monitoring the situation, as a successful breakout from the current channel could potentially pump the price to new highs. Technical analysis shows a falling wedge breakout, which is a bullish pattern that indicates a potential price rally. However, investors remain cautious, especially given the recent market conditions.

The current market cycle is characterized by underlying conditions that are driving continued bullishness. Investors are underestimating the strength of these conditions, which include factors such as increasing institutional adoption, regulatory clarity, and technological innovation. These factors are likely to continue driving the market in the coming months, and SEI's recent performance is a reflection of this broader trend.

SEI price has retreated after a recent 79% rally and is now testing a key support level, with technicals signaling potential for further upside. After a clean and explosive breakout from a descending channel on June 20, SEI price surged to $0.34, marking a ~79% pump from the breakout level near $0.19. Since then, it has pulled back to $0.27, but remains well above the 20 EMA and 50 SMA, which continue to hold a bullish crossover that formed post-breakout.

SEI price is now testing a key level — the first significant swing high within the descending channel — which previously acted as resistance and is now being retested as support. This retest could confirm the breakout and set the stage for further upside if it holds. Importantly, the pullback occurred on declining volume, which means it’s likely a healthy retrace rather than the start of a broader correction. The price is also respecting a short-term ascending trendline drawn from the breakout low, adding significance to this level of pullback.

Momentum indicators support the bullish outlook. The RSI is at 61, having cooled off from overbought levels, but is still in the bullish territory. There’s room to move higher before hitting overheated conditions again. The bullish crossover is still intact on the MACD, and the histogram continues to print green. Although momentum has slowed — which is expected during pullback — it’s not reversing yet.

Overall, the chart remains structurally strong and primed for another leg higher. However, for the uptrend to confirm continuation, price must form another higher high above the $0.34 resistance level. A strong daily close above this level would open the door to the next target range between $0.35 and $0.40.

Alongside its bullish chart setup, SEI also benefits from several promising developments on the fundamental front. Notably, Circle, which recently completed its blockbuster IPO, disclosed in its filings that it holds 6.25 million SEI tokens. SEI is also one of the blockchain networks under evaluation by the Wyoming Stable Token Commission for the WYST stablecoin. There’s also Canary Capital’s recent filing for a staked SEI ETF, which is currently being reviewed by the U.S. Securities and Exchange Commission.