SEI has captured the attention of analysts, as it prints a bullish pennant pattern on its chart, signaling a potential breakout. According to analyst CryptoBullet, this technical formation typically follows sharp price movements and indicates consolidation within a narrowing range before a decisive upward move.
If the breakout is successful, CryptoBullet anticipates a price target between $0.50 and $0.70, marking a significant upside potential for the token. This pattern suggests that it could be preparing for a continuation of its previous upward trend, potentially leading to a 50% price surge.
Meanwhile, Crypto Tigers highlights the breakout from a two-year downtrend wedge, noting a completed accumulation phase and a shift in momentum. This could result in a swift upward move, similar to previous explosive price rallies.
Bullish Pennant Pattern Signals Potential Surge
A bullish pennant formation occurs when the price consolidates within a narrowing range after a sharp movement, setting the stage for a continuation of the prior trend. In the case of the altcoin, the chart reflects this formation, suggesting that the cryptocurrency may experience substantial upward momentum. According to CryptoBullet, if the breakout from the pennant pattern is successful, the price could reach the $0.50 to $0.70 range, signaling a 50% potential rise.
SEIUSDT Chart | Source:x
Historically, bullish pennants have acted as reliable indicators for price continuation, and the current setup of its price action suggests a possible extension of the upward trend. The formation itself is often considered a precursor to a breakout, with the narrowing price range indicating that market participants are positioning for a significant move.
Breakout from Two-Year Downtrend Wedge
The recent price action has captured the attention of analysts, as the cryptocurrency breaks out of a two-year downtrend wedge. Analyst Crypto Tigers points to this breakout as a significant event, with the asset poised for a sharp upward rally following a long period of accumulation. The chart shows a clear wedge formation, with price action confined within the narrowing trendlines, signaling a potential shift in market sentiment.
SEIUSDT Chart | Source:x
This breakout is notable because it follows a prolonged phase of consolidation, where its price remained within a defined range. According to Crypto Tigers, the accumulation phase appears to be complete, and market participants have likely secured their positions in anticipation of a breakout. A successful move above the resistance levels could lead to rapid price gains, reminiscent of previous bullish rallies.
Price Action Analysis and Market Behavior
The price movement at the time of writing demonstrated moderate fluctuations with an upward trend, reaching a peak of $0.32 after starting the day at approximately $0.31. Therefore, this 3.53% price increase over 24 hours reflects positive market sentiment and growing interest among traders. Trading volume also followed the price movement, with noticeable spikes during the price increases, indicating a strong correlation between price action and market participation.
SEIUSD 24-Hr | Chart | Source: BraveNewCoin
However, towards the end of the day, the price consolidated around the $0.31 to $0.32 range, suggesting a temporary pause in momentum. The volume during this consolidation phase decreased slightly, which could imply that the market is waiting for the next significant move. To maintain its upward momentum, the token will need sustained volume and price action above the $0.32 mark.
Market Position and Liquidity
Additionally, the market capitalization is currently approaching $1.93 billion, with a circulating supply of over 6 billion tokens. This indicates that the asset has considerable liquidity, which is crucial for its ability to maintain upward momentum. Hence, a consistent trading volume will be necessary to support further price movement, especially as it approaches key resistance levels.
If the asset can maintain momentum above its current levels, it could be on track to reach the target price range of $0.50 to $0.70. However, market participants will need to monitor trading volumes and price behavior to assess the likelihood of the breakout sustaining itself.
