SEI has seen a sharp surge in price recently, marking a significant uptick likely driven by growing interest in alternative chains.
This surge comes after months of consolidation, and the rise in transaction volume could further fuel price gains. However, questions remain if this momentum will end the five-month-long Death Cross.
SEI Investors Are Extremely Bullish
The number of daily transactions on the SEI network has been rising steadily over the past few months. In fact, transactions have tripled in the last three months, reaching as high as 1.6 million in a single day recently.
This surge in altcoin activity signals strong demand for the asset and indicates investor confidence.
The growing transaction figures reflect the increasing interest from investors, many of whom are likely attracted by SEI’s developing ecosystem.
If this trend continues, it could further push SEI’s price upward, reinforcing the positive momentum seen in the market.
Despite the recent surge, SEI has been trapped in a Death Cross since January, which has lasted for over five months. This technical pattern occurs when the 200-day exponential moving average (EMA) is above the 50-day EMA, signaling a prolonged downtrend.
However, the recent price surge has sparked a slight uptick in the 50-day EMA, suggesting that a change in trend could be on the horizon.
If the 50-day EMA crosses above the 200-day EMA, it would mark a Golden Cross, signaling a potential shift toward a sustained uptrend.
The possibility of this crossover has investors hopeful that SEI may finally break free from its previous downtrend, setting the stage for more bullish price action.
SEI Price Observes A Surge
At the time of writing, SEI is trading at $0.29, just below the key resistance of $0.30. This marks a 4-month high after a 50% rise in price over the past week.
The recent surge has put SEI on the radar of investors, with eyes now on whether it can break through the $0.30 resistance.
If SEI successfully flips $0.30 into support, the altcoin could push towards $0.35. This level is crucial for continuing the price rally and securing the recent gains.
A rise past this resistance would suggest that the upward momentum is sustainable, potentially signaling the end of the downtrend.
However, if investors choose to book profits, SEI could face a correction. A drop through the $0.27 support would suggest weakening momentum, potentially pushing the price further down to $0.24.
A fall to this level would invalidate the current bullish thesis, signaling a reversal in the altcoin’s trend.
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