Is SEI Poised for a Breakout? Converging Technical Patterns and On-Chain Momentum Signal a Bullish Inflection

In the fast-evolving world of blockchain and decentralized finance (DeFi), identifying assets with converging technical and on-chain signals can unlock high-conviction investment opportunities. Solaris Energy Infrastructure Inc (SEI) and the Sei Network (also tickered as SEI) share a name but represent distinct entities. This article focuses on the Sei Network, a high-performance blockchain optimized for derivatives trading, which has recently shown compelling signs of a potential breakout.

On-Chain Momentum: A Foundation for Growth

The Sei Network has emerged as a formidable player in the DeFi space, with Q3 2025 data revealing robust on-chain activity. The network processed over $38 billion in perpetual trading volume and secured $600 million in total value locked (TVL), ranking it fourth globally in TVL efficiency, according to a Brave New Coin analysis. This efficiency stems from its architecture, which processes 16 times more trading volume per $1 TVL compared to the average DeFi network, as noted in the same analysis. Such metrics highlight Sei's appeal to institutional investors, who benefit from reduced slippage and rapid execution-critical advantages in high-frequency trading environments.

Moreover, the network's user base has expanded significantly, with over 13 million active addresses, supported by strategic upgrades like the Giga protocol and integrations with institutional-grade custody solutions like Crypto.com Custody, per the Brave New Coin analysis. These developments underscore Sei's transition from a niche blockchain to a scalable infrastructure capable of supporting mainstream adoption.

Technical Convergence: Indicators Align for a Reversal

Technical analysis further strengthens the bullish case for SEI. The TD Sequential indicator, a tool for identifying potential trend exhaustion, has flashed a buy signal on Sei's daily chart, suggesting a possible bottom formation near the $0.19 support level, according to the Brave New Coin analysis. This signal follows weeks of selling pressure and is often associated with trend reversals.

Key technical indicators corroborate this narrative:
- RSI at 37: The Relative Strength Index (RSI) currently sits in mildly oversold territory, indicating potential for a rebound.
- MACD Convergence: The Moving Average Convergence Divergence (MACD) lines have begun to converge, with the histogram showing smaller red bars-a sign that bearish momentum is waning, as noted in the Brave New Coin analysis.
- Price Action: A hammer-like candlestick pattern formed on the daily chart, signaling that buyers have absorbed sell pressure. Analysts suggest a daily close above $0.22 could trigger a move toward $0.25–$0.28 resistance zones, per the Brave New Coin analysis.

These patterns align with on-chain data, creating a rare convergence of technical and fundamental signals. For instance, over 2.3 million transactions in 24 hours reflect strong user engagement, even as the price consolidates, per the Brave New Coin analysis.

Network Upgrades and Institutional Adoption: The Catalysts

Sei's technical and on-chain strength is underpinned by strategic upgrades. The Giga protocol, launched in late 2024, enhanced transaction throughput and reliability, enabling the network to handle surges in derivatives activity, per the Brave New Coin analysis. Meanwhile, partnerships with institutional custodians like Crypto.com have addressed security concerns, making SEI more attractive to large investors, according to the same analysis.

This institutional adoption is critical. Unlike retail-driven tokens, Sei's growth is now supported by capital that prioritizes infrastructure stability and scalability-factors that reduce volatility and create a floor for the token's value.

Risks and Resistance Levels

While the bullish case is compelling, risks remain. A breakdown below the $0.19 support level could reignite selling pressure, testing the $0.17–$0.18 range, per the Brave New Coin analysis. Additionally, macroeconomic factors, such as interest rate uncertainty, could dampen risk-on sentiment. However, the current technical setup suggests that buyers are well-positioned to defend key levels.

Conclusion: A Convergence of Forces

The Sei Network is at an inflection point. On-chain metrics like TVL and trading volume, combined with technical indicators like TD Sequential and RSI, paint a picture of an asset primed for a breakout. Institutional adoption and network upgrades provide the foundational support needed to sustain this momentum. For investors, the key will be monitoring the $0.22 level-a potential catalyst for a move toward $0.25–$0.28.

As always, market conditions can shift rapidly, but the alignment of technical, on-chain, and fundamental factors makes SEI a compelling case study in how blockchain projects can leverage both data and design to capture market share.