SEI is forming a Head and Shoulders pattern on the daily chart, with neckline support near $0.27.
A breakdown below the neckline could trigger a drop toward the $0.20–$0.22 zone.
SEI is trading at $0.294 with a 2.10% 24-hour gain and 8.19% weekly decline.
SEI is approaching a crucial technical level as a Head and Shoulders pattern forms on the daily chart, signaling a possible trend reversal. Traders are watching closely for a potential breakdown below the neckline support around the $0.27 zone.
SEI Forms Bearish Chart Pattern Near Key Technical Level
SEI is forming a bearish Head and Shoulders pattern on the daily timeframe, trading at $0.294 on August 6, 2025. The neckline support around $0.27 remains a critical area that could dictate the asset’s next major move.
The pattern includes a left shoulder formed in mid-June, a peak or "head" in early July above $0.36, and a right shoulder near $0.32. This classical chart structure, often signaling a potential bearish reversal, is now nearing a decisive stage.
The neckline has held multiple times as support. A breakdown below this level, especially on strong volume, could trigger a deeper correction. Traders are closely watching for a daily close below the neckline to confirm the pattern’s completion.
Where Price Could Move if Neckline Fails
A tweet from @alphacryptosign pointed out the current setup, noting the potential for a sharp decline if support breaks. The projected move is derived from the height of the head to the neckline, then subtracted from the neckline.
Based on this measurement, a breakdown could send SEI toward the $0.20–$0.22 range. This represents a possible 20–25% decline from current levels. This level aligns with the technical expectation of the pattern, making it a key area for traders.
If the breakdown materializes, it may offer a clean short setup in line with established trading strategies. Volume remains an essential component to validate the move. Without strong selling volume, the structure could lose validity.
SEI Price and Market Reaction Today
As of writing, SEI has gained 2.10% in the past 24 hours, with a 7-day decline of 8.19%. The 24-hour trading volume stands at $111,305,452, reflecting moderate interest.
Despite the recent bounce, SEI remains below the right shoulder’s high. Traders continue to monitor price action at the neckline for clues about trend continuation or reversal.
