SEI Breakout Alert: Can It Smash the $0.375 Sell Wall?
- SEIs falling wedge hints at an upside breakout, with a $0.375 sell wall as the first hurdle.
- Market cap ATH with a lower price high creates a bearish divergence, signaling potential weakness.
- Analysts caution about SEIs inflation, as increasing supply could dilute token value.
Sei Network, Layer 1 blockchain, is gaining traction, evidenced by growing mindshare. Technically, its native token is formed a falling wedge, a bullish technical pattern that often comes before a price breakout to the upside. Market analyst expects a clear confirmation in a few days.
This indicates a retest of the lower trendline of the wedge or break through the upper trendline. In case the latter happens, this would signal a potential trend reversal and upward momentum. However, the analyst has identified a sell wall near $0.375, a key hurdle for the price surge. From here, there are no confirmed sell wall until until $0.9, which if broken could pave the way for a significant rally for the token.
The pattern will be confirmed in a few days, either by touching the lower line once more and moving, or by breaking the pattern and moving. And if it breaks the pattern, there is a sell wall near $0.375. No other sell walls are confirmed. If it breaks through the sell wall, there are no other sell walls until $0.9. The start of the bull market of $SEI is not far away.
SEIs Technical Tug-of-War: Bullish Patterns vs. Inflation Concerns
Another notable development is SEIs market cap, which recently reach a new peak despite the price hitting a lower high. This divergence between the market cap and the price often lean towards the bearish tone. This is because the influx of money flowing into the token is not reflecting into the price.
Analyts have therefore expressed caution perceiving SEI as inflationary token, whose increasing supply can dilute the value of existing coins.
Meawhile, SEIs TVL has experienced a dramatic increase from $26.6 million to $353.5 million, representing a whopping 1300% growth. This growth is highlighted as being exceptional compared to other Layer-1 (L1) blockchains during the same period.
Read more: https://www.tronweekly.com/sei-smash-the-0-375-sell-wall/
Text source: TronWeekly
