SEI is gaining upward momentum, breaking out from the inverse head and shoulders reverse setup

A prominent crypto analyst suggested that after riding a prolonged downtrend, SEI seems to have reached a turning point from a technical standpoint.

SEI has encountered a setback in price over the last 24 hours as a result of overall market volatility. The price is currently trading at a level of $0.2362 with a 24-hour volume of $115.31M. The market cap value is $1.25B.

SEI's price is down by 2.93% over the last 24 hours. However, over the last week it is stable, and over the last month, its price is up by 21.32% and showing signs of a strong trend reversal.

SEI Primed For Rally After Inverse Head And Shoulders Pattern

One crypto analyst, on the other hand, has spotted a different pattern that could indicate that SEI has reached a turning point from a technical standpoint.

Pointing out that the asset has been largely contained within a steep downtrend, it seems that SEI has completed a textbook Inverse Head and Shoulders pattern on the daily chart. This pattern is a classic reversal setup that tends to indicate the reversal of bearish momentum and the potential start of a new uptrend.

This setup is well-respected across traders and analysts and indicates a change in market attitudes. The breakout through the neckline resistance level at the $0.2300 level was not just technically important but also confirmed through increased trading volume, a very important confirmation for chart-based breakouts.

The surge in volume is a sign of increasing conviction among participants and decreases the chances of a false breakout. SEI has since maintained its position above this neckline, and this is now a very important support level.

SEI Eyes $0.30 Target After Solid Trend Reversal

Further confirming the positive outlook is the fact that SEI is trading over its 50-day Exponential Moving Average (EMA), a dynamic level commonly used to indicate medium-term trend strength. The breakout has continued to show strength, an encouraging sign of sustained buyer interest.

This upward structure highlights that bulls are actively defending key support zones, stepping in during pullbacks, and gradually building momentum in favor of a continued rally.

"A breakout above the neckline, especially with increased volume, can be a strong indication that the trend might be reversing. Often, traders prefer to see a retest of the breakout level for confirmation. A successful retest, like the one that occurred today, can lead to more buying and potentially more price momentum," Ben, a crypto trader, explained.

Looking ahead, the projected upside, calculated from the bullish chart pattern, suggests a potential price target between $0.2900 and $0.3000.

If SEI holds its position over the neckline area, then the patterns of increasing volume remain supportive, and traders expect further upside pressure. Investors are currently waiting to see prices break through the past resistance levels to confirm the next leg up and potentially trigger a new stage of trend reversal.