Sei Network (SEI) Is Gaining Traction, Evidenced by Growing Mindshare and Bullish Technical Pattern

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

The hype surrounding Sei Network, a Layer 1 blockchain, is heating up, especially with its native token, SEI, showing promising technical signs. As the token price threatens to break out of a "falling wedge" pattern, a move that could signal a substantial price increase, the mindshare is growing.

According to a recent analysis by crypto analyst, the fate of the pattern will be decided in a few days. If the lower trendline of the wedge is retested and the price moves upwards, or if the upper trendline is broken, then the pattern will be confirmed.

"If the pattern is broken, then the first sell wall is near $0.375. After that, there are no confirmed sell walls until $0.9, which could open the door for a deep rally for SEI."

This technical development comes amidst a broader narrative of SEI being an "inflationary" token. As the token supply increases, the value of existing coins could be diluted, especially if the price doesn't keep pace with the growing supply.

"The market cap of SEI reached a new peak despite the price hitting a lower high, which is an interesting divergence that usually bodes poorly for the token."

This statement suggests that a lot of money is flowing into SEI, yet the price isn’ value increasing commensurately, which could be bearish in the long run.

"This massive increase in TVL is especially impressive when compared to other Layer 1 (L1) chains over the same time period. For instance, AVALANCHE's TVL decreased from $1.45 billion to $1.04 billion, while NEAR's TVL went down from $861.4 million to $633.8 million."