SEI Price Breaks a Long-Term Downtrend With Momentum

SEI price has been performing poorly since November 2024, forming lower highs and lower lows. However, it recently bounced off a strong support zone and is now approaching a major technical level that could decide whether the rally continues or fades.

Traders are watching closely as SEI retests a prior resistance zone and breaks out of a long-term descending trendline.

SEI Price Breaks Long-Term Downtrend With Momentum

SEI has been moving in a defined bearish structure, capped by a multi-touch descending trendline, since November 2024. This trendline encountered and rejected multiple rallies, creating clear points of resistance.

However, the most recent attempt broke through the trendline on the sixth try, showcasing persistent buying strength. This breakout coincides with a move above the 50-day simple moving average (SMA), currently at $0.1836.

SEI price is trading above this level, indicating that short-term sentiment may be shifting in favor of bulls. The 200-day SMA, which stands at around $0.3518, is still overhead and will likely act as a long-term resistance.

SEI Price Support Between $0.13–$0.14 Has Proven Strong

The recent bounce began from a well-established support zone around $0.13 to $0.14. This area held during multiple sell-offs and drew buyers back in April. The higher low formed at this level marks a break in the previous bearish market structure.

Since then, the SEI price has printed a higher high, confirming a potential trend reversal. Traders will observe how the price reacts if it pulls back towards the $0.19–$0.20 range. Maintaining prices above that zone would support the case for continuation.

Moreover, SEI is testing the $0.22–$0.23 range, which acted as a resistance level in February. A daily candle close above this range could open the door to higher targets between $26 and $0.30. Beyond that, the 200-day SMA near $0.35 may come into play.

Until this zone is broken with strong volume, some traders may remain cautious. However, repeated tests of resistance often weaken its strength, and momentum is beginning to build.

So, Should You Put $1,000 Into SEI Token?

SEI price has broken out of a multi-month downtrend and flipped short-term structure into a bullish formation. The breakout above the trendline and the 50-day SMA suggest growing buyer strength.

However, the $0.23 level remains unbroken and will be a deciding point for many traders. A close above it, accompanied by sustained volume, could attract more attention and potentially validate a larger trend reversal.

On the other hand, failure to hold $0.19 on a pullback could slow the momentum. Until then, SEI remains at a technical crossroads.