The cryptocurrency market is experiencing a resurgence in bullish momentum, with Bitcoin (
$BTC ) surging by 2.56% to reclaim the $105,000 mark. This upward movement has sparked notable rallies among major altcoins, including Sei (
$SEI ) and Pyth Network (
$PYTH ), both of which are displaying significant gains.
Both tokens are approaching critical resistance levels after breaking out of falling wedge patterns, which are generally regarded as bullish formations. This suggests that further upward price action could be on the horizon.
Sei (SEI) Technical Analysis
Currently trading at $0.32, SEI is approaching a pivotal point within its falling wedge pattern. The token recently found support near the $0.2970 mark, which aligns with the lower boundary of the wedge, further supporting the potential for a bullish reversal.
Key Technical Levels:
Resistance: The immediate resistance level is located at the 25-day Simple Moving Average (SMA). A successful breakout and retest of this level could push SEI toward subsequent resistance targets at $0.43 and $0.48, indicating a potential upside of 47% from its current price.
Momentum Indicators: The MACD (Moving Average Convergence Divergence) is displaying early signs of bullish momentum, further strengthening the case for a potential breakout.
Pyth Network (PYTH) Technical Analysis
Likewise, PYTH is nearing the upper boundary of its falling wedge pattern, with the token currently priced at $0.28. PYTH recently found support at around $0.26, coinciding with the wedge’s lower boundary, reinforcing the possibility of upward movement.
Key Technical Levels:
Resistance: A breakout beyond the 25-day SMA could pave the way for a move towards resistance levels at $0.37 and $0.40, offering a potential upside of 41%.
Momentum Indicators: The MACD indicator is beginning to turn positive, signaling a potential shift in momentum toward a bullish trend.
Market Outlook
As both SEI and PYTH approach key resistance levels, traders should closely monitor these zones for potential breakouts. The continued strength of Bitcoin could act as a catalyst for further upward movement in the altcoin market. However, should resistance levels hold, short-term pullbacks could occur before another attempt at higher prices.
As always, traders are advised to exercise caution and consider broader market conditions when making investment decisions.
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