SEI has pulled back to a former resistance-turned-support zone after a sharp 79% rally, holding a bullish structure above key averages.
Momentum indicators such as RSI and MACD suggest healthy consolidation, supporting a potential continuation of the uptrend.
Institutional interest, including Circle Holdings and an ETF filing, strengthens SEI’s position amid a key technical retest.
The price of SEI has pulled back to a critical support area following a sharp 79% surge that began on June 20. The token had broken out from a descending channel around $0.19 and rallied to a high of $0.34. Despite the recent decline to $0.27, SEI continues to hold above major moving averages, keeping the broader bullish setup intact.
This pullback is being done on low trading volume, so chances are there will be a retracement rather than a change of trend. SEI is still touching an upward trendline since its breakout level. The 20-day MExM and 50-day SM remain bullishly crossed with each other, and this shows they are strong in their price activities.
The momentum indicators are also in good positions. The RSI has fallen to 61, which is beyond the neutral readings. The MACD remains in a bullish position, the histogram bar has turned green, but the momentum has slowed to the pace at which the price consolidated.
Retest Structure Increases the Former Resistance to Support
The price zone that is now observed is in line with the first swing high within the previously moving down channel. This level, which was earlier resistance, is currently being retested as support. The result of this trial will play a decisive role in the way the next step should be taken. In case the support is maintained, it can be an indicator of further improvements in the upward trend.
To sustain the uptrend, SEI should have to register a new higher high than the recently registered new high of $0.34. Any close above this resistance daily would probably result in a new buying interest and open the path towards the forthcoming target of between 0.35 and 0.40.
Fundamentals Add Strength to Bullish Outlook
Beyond technicals, SEI's recent momentum is reinforced by key developments. Circle, which recently went public, reported holding 6.25 million SEI tokens. The Wyoming Stable Token Commission is also reviewing SEI’s network as a potential platform for its WYST stablecoin.
Additionally, Canary Capital has filed for a staked SEI ETF with the SEC, further underlining institutional interest.
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