- SEI had a strongly bullish outlook on the higher timeframe charts.
- The prices could continue bouncing between $0.6-$0.75 to shake out over-eager bulls.
Sei [SEI] rallied 298.9% from its low on the 18th of December to a peak on the 3rd of January. Since then, the price has retreated to the $0.6 demand zone. The bulls continued to have the upper hand, and demand for the token was strong.
The market sentiment continued to be bullish despite the short-term volatility. Two key areas of support and resistance were marked on the one-day chart of SEI. The bulls are likely to drive prices to $1 and beyond in the coming weeks.
The SEI price action chart showed buyers have been untiring
Source: SEI/USDT on TradingView
The market structure on the one-day chart was firmly bullish. The most recent higher low was set at $0.55 on the 3rd of January.
The selling pressure on that day saw prices retreat to a zone of demand at $0.55 (cyan box) which had been a short-term consolidation zone on the 31st of December.
At press time, SEI was trading at $0.7305. The $0.6745 and $0.63 have been significant in the past week. A retest of these levels would likely produce a bounce in prices. The RSI was bullish with a reading of 61 and agreed with the technical structure.
The OBV has been marching northward at an impressive pace since November. However, it has slowed down in the past ten days as the momentum weakened too.
Yet, the lack of intense selling pressure suggested that SEI was consolidating before another push upward.
Source: Coinalyze
Data from Coinalyze pointed to a steady rate of selling in the spot markets. The spot CVD has been in a firm downtrend over the past week as prices remained stuck within the $0.6-$0.75 region.
On the other hand, the Open Interest has moved in tandem with the prices. This suggested that each bounce in prices saw speculators willing to bet on more price gains.
It underlined the possibility that futures market participants still possessed bullish conviction and were ready to jump onto the next rally.
How much are 1, 10, or 100 SEI worth today?
Ironically, this eagerness could see SEI trapped within a range longer to shake out these traders and hunt their stop-loss orders.
The idea of consolidation meant that a move to the $0.67, $0.63, or $0.55 levels would be a buying opportunity. Traders can wait for such a dip to enter positions and exercise proper risk management when sizing their positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.