SEI bulls target $0.50 – First, THIS support level needs to hold

Key Takeaways

What’s next for SEI’s price action?

Analysts predict SEI may dip to $0.28 before a potential 66% rally to $0.50, but failure to hold above $0.28 could push prices lower to $0.24.

What factors are influencing SEI’s current trend?

Sellers are dominating as $18.42M in SEI was unlocked, with another $17.76M unlock set for the 15th of October, even as on-chain activity grows with nearly 1M daily active addresses.

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Sei Network’s [SEI] price was coiling inside a triangle pattern on the daily timeframe, with price fluctuation unchanged from the previous day’s close.

Per CoinMarketCap, the daily trading volume dropped to $150 million, representing a 14% decline. In the meantime, community sentiment was 85% bullish among 91.4K users.

SEI to drop one more time!

On the daily charts, SEI was trading inside a triangle, with valuation converging at the apex of the pattern at press time.

The price looked primed for the lower support levels of the pattern, at $0.28. However, the Trend Strength Index indicated that bulls were still in control of the larger picture.

In case of a drop to $0.28, SEI could break out to $0.50, a 66% surge from the lows of the pattern. Alternatively, failure to hold the level could result in a drop to $0.24, coinciding with the fair value gap (FVG).

The hourly chart printed a buy signal, per crypto analyst Ali Martinez. The pattern followed a divergence where price dropped while the RSI made new highs.

Technically, if this signal holds, the altcoin could revisit the equal highs at the $0.36 level. This meant that the drop to $0.28 could be delayed or invalidated.

Sell pressure increasing 

The Spot Taker CVD data on CryptoQuant supported this potential drop. The metric showed that sellers were dominating after the delta stayed neutral in the past week.

Additionally, about $18.42M in SEI was unlocked in the last 24 hours, fueling this breakdown, per Tokenomist data.

The upcoming SEI unlocks could also ignite another selling pressure as they result in increased supply. Notably, about 55.56 million SEI valued at $17.76M would hit the markets on the 15th of October.

SEI on-chain metrics

Despite the mix in bearish and bullish signals, SEI’s on-chain metrics showed growing activity.

The number of active addresses was stable at 937.3K; that is almost a million users on a daily basis, per Artemis data. The Total Value Locked (TVL) on SEI was $593 million at the time of writing.

However, the DEX trading volume was on the lower side at $30.5 million. The dip occurred at the same time that the price slipped from $0.33 to $0.31.