SEI Price Formed a Falling Wedge Pattern, Which Historically Signaled a Bullish Breakout

This article explores the SEI price action that formed a falling wedge pattern, which historically signaled a bullish breakout.

Key Insights:

SEI price has been consolidating in a falling wedge pattern, which is often a bullish technical formation.

Despite recent price movements, key indicators like Open Interest and TVL suggest growing market interest and liquidity.

As SEI gains momentum with upgrades like USDT0 and a strong rise in Total Value Locked (TVL), traders are watching for a confirmed breakout.

SEI Price Set for Breakout as Open Interest Surges Over 5%

SEI price has been consolidating in a falling wedge pattern, which is often a technical formation that precedes a bullish breakout.

If the price is making lower lows and lower highs then it is said to be forming a wedge, which is a converging trendline. It is indicating that the price will break out to the upside as the edges of the wedge come closer together.

Critical resistances to watch are the upper boundary of the wedge, which could be encountered if there is a rally. A breakout could then be triggered if SEI is able to penetrate above this resistance, sending the price much higher.

From the technical analysis, if SEI moves above $0.17 and $0.18 resistance with volume, then a reversal could be confirmed.

After a confirmed breakout, the next immediate price target will be around $0.20, which is psychological resistance. Should momentum continue and buying volume increase, however, SEI may continue rising beyond $0.30 in the near term.

Open Interest Increases Signal Growing Participation in Market

Open interest (OI) data for SEI also reflects growing market participation. The current open interest stands at $42.6 million across all contract types, with a notable rise in perpetual contracts.

The fact that 100% of the open interest is in perpetual contracts indicates that traders are primarily engaging in short-term speculative activities.

Perpetual contracts allow traders to take leveraged positions without expiration dates, meaning that many positions are highly sensitive to short-term price movements.

In the past 24 hours, open interest rose by over 5.46%, which supports the idea of renewed interest. Rising OI alongside wedge formation typically indicated an impending move, with traders positioning themselves in anticipation of a breakout.

Sei Network’s Ecosystem Growth and Upcoming Upgrades

Not only does the SEI have strong technical patterns in its support, but also the SEI ecosystem has been growing up to this point. USDT0 launched by Sei over LayerZero gives the capability to move liquidity without bridges. Improving this position further cements SEI’s place in the DeFi space with users and liquidity providers having access to the ecosystem more effortlessly.

In addition, TVL on Sei has grown, recently going up to over $369 million, indicating improved confidence in the market with regards to the network.

Another major upgrade was Giga, which promised a 50x performance boost by enhancing execution, consensus, and storage. This upgrade further strengthened Sei’s appeal as a high-performance chain for DeFi applications. With these improvements, Sei appeared positioned to retain liquidity, users, and long-term adoption.

According to recent SEI price forecasts, SEI may increase by around 226.19% over the next month, potentially reaching $0.486434 by May 9, 2025. Despite current technical sentiment being bearish and the Fear & Greed Index reading 39 (Fear), SEI has recorded 15 green days in the past 30 and shown 10.52% price volatility during that time.