Sei (SEI) Price Prediction: Rebound May Be Possible as Technical and Fundamental Indicators Point to a Change in Trend

Sei (SEI), a layer-1 token, dropped to a low of $0.1722 this week, down over 70% from its highest level in December.

Sei (SEI) price dropped to a low of $0.1722 this week, a level last seen in March. The token has since rebounded to trade above the $0.20 level as it attempts to recover from the recent downturn.

At the beginning of the year, SEI hit a high of $0.7343, but the token has since lost more than 70% of its value. It also remains below the 50-day and 25-day Exponential Moving Averages, indicating that the bears are in control.

However, technical indicators suggest that a rebound may be possible. The token has formed a double-bottom pattern at $0.2038, with a neckline at $0.7343. A double-bottom is one of the most popular bullish reversal patterns in the market. It is formed when a token drops to a support level twice, and then bounces to reach the neckline.

SEI has also formed a bullish divergence pattern. The MACD indicator has continued rising even as the price has fallen. Similarly, the Relative Strength Index has formed a series of higher highs and higher lows.

This divergence pattern suggests that the selling pressure is easing, while the buying pressure is increasing.

What next for SEI price?

If SEI bounces off the support at $0.180, it could rise to the next point of interest at $0.7343, its highest swing in December. This target is about 265% above the current level. However, a drop below the support at $0.180 will invalidate the bullish view.

On the other hand, if the bulls push SEI above the 50-day EMA, it could clear the way for a move toward the year-to-date high of $0.5111.

On the other hand, the DeFi Llama data shows that the total value locked in Sei’s DeFi ecosystem is now at $340 million. This is a major achievement since most layer-1 and layer-2 networks have shed assets during the ongoing crypto crash.

Most players in the Sei ecosystem have added assets this month. Yei Finance, a top lending protocol in the network, has accumulated nearly $200 million in assets, up 90% from the same period last month.

Sailor, a DEX network, holds $53 million in assets, while Stargate, Dragon Swap, and Avalon Labs have also added assets.

This influx of assets may also help to boost demand for SEI tokens.

Recently, Donald Trump’s World Liberty Financial acquired SEI tokens worth over $100,000. The purchase signals that the team sees value in the token and are optimistic about its future potential.