The value of $SEI increased by 35% within 3 days of being shortlisted for the Wyoming government-backed stablecoin pilot program.
The currency is emerging from a long-term wedge pattern, with strong technical indicators supporting this rise.
Analysts expect further increases as trading liquidity doubles and investor confidence improves.
The Sei token ($SEI ) saw a sudden price increase this week, as it was selected as one of the finalists in the Wyoming Stablecoin Test Program (WYST). On June 20, the price of SEI reached $0.2136, a 35% increase from its recent low of $0.1596 just three days prior. This movement in the direction represented a breakout from a long-term descending wedge pattern, a potential indicator of a trend change.
In 2023, the Wyoming Stablecoin Task Force selected both Sei and Aptos to enter the final testing phase. Sei scored 30 points, slightly below #Aptos which scored 32 points, and above other competitors, including #AvalancheAVAX and $SUI and XRP Ledger from #Ripple . These criteria included operational duration, user base, core infrastructure, and security.
#WYST is a stablecoin backed by blockchain technology, and will be issued through Layer Zero technology to enable cross-chain compatibility. This includes a one-to-one US dollar redemption feature, making it one of the first stablecoins issued by the United States.
This regulatory-backed initiative, which includes the protocol, has seen a rise in investor interest. #SEI increased by 15% within 24 hours, according to market data, bringing its market value to around $1.18 billion.
Technical indicators confirm bullish momentum.
The daily chart for the SEI/USDT pair indicates a bullish breakout from a widening descending trend that lasted six months, supporting a change in trends. The currency traded at its lowest point at $0.1596 on June 17, and its highest point at $0.2144 on June 20.
Technical indicators suggest a bullish trend. There is renewed buying pressure as the Relative Strength Index (RSI) rises to 55.66. The MACD line has crossed above the signal line, indicating a bullish crossover, suggesting further upward momentum.
Bollinger Bands indicators also confirm increased volatility, as the SEI token approaches the upper range at $0.2107, which casts a shadow over strong short-term demand. A move above the 20-day moving average ($0.1887) indicates a bullish price trend.
Analysts noted this. A well-known trader named FOUR pointed to the chart structure, suggesting that SEI may be preparing for a longer move towards a price level of $0.80, assuming momentum continues.
Stablecoin legislation and ecosystem growth bolster optimism.
The market reaction also aligns with the broader trends in U.S. cryptocurrency regulations. The Senate passed the GENIUS bill, which proposes a federal framework for stablecoins, although the legislation is still under review in the House of Representatives. Its implementation will establish guidelines on stable assets issued by states like WYST.
The announcement for SEI comes amid growing speculation about ecosystem growth. Although there have been no new announcements since then, cryptocurrency analysts have anticipated future partnerships or upgrades for the protocols. Victor, a cryptocurrency market observer, noted the timing of the breakout and the buzz on social media, suggesting that institutional players may enter early in anticipation of further updates.
