Sei Price Prediction: SEI recovery rally to face stiff hurdles at $0.700
- Sei price has shed 35% in under six days, due to excessive selling pressure.
- After a liquidity run below the $0.585 swing low, SEI triggered a 13% recovery rally.
- Going forward, the $0.690 and $0.701 resistance levels will be pivotal in determining the trend going forward.
- Rejection at $0.690 or $0.701 that leads to a production of a lower low below $0.562 will invalidate the bullish thesis.
Sei price shows a good sign of recovery after sweeping a key swing low. This move indicates that bulls are vying for higher prices. However, the pullback rally will not be simple due to key hurdles.
Readmore: Sei price could rally 20% as SEI bulls mount a comeback
Sei price recovery rally kickstarts
Sei price underwent a steep correction of 35% in less than six days, pushing it from $0.874 to $0.562. In the process of this sell-off, SEI swept below a key swing point of $0.585, triggering a short-term spike in buying pressure. As a result, the altcoin inflated by 13% and currently trades at $0.637.
The $0.585 is a key swing low because it is a higher high in the long-standing uptrend that failed to produce a higher high and has now produced a lower low as well. While this development could mean the start of a downtrend, it could also reflect a short squeeze.
Regardless, the bounce in Sei price will encounter two key hurdles at $0.690 and $0.701 after a 10% move. If buyers push higher and flip these resistance levels into a support floor, it will indicate an active short squeeze, and likely propel the altcoin higher.
In such a case, Sei price could attempt to sweep the equal highs buy-side liquidity resting above $0.884. This move would constitute a nearly 40% rally from the current position.
Also read: Week Ahead: This week’s altcoin narrative and Bitcoin's fourth halving targets
SEI/USDT 4-hour chart
On the other hand, if Sei price recovery rally faces the $0.690 and $0.701 hurdles and fails to overcome them, it would create a lower low. This development is indicative of a potential reversal and a spike in selling pressure that is likely to push SEI lower.
If Sei price produces a decisive four-hour candlestick close below $0.562, it will create a lower low and invalidate the bullish thesis. In such a case, the altcoin will encounter the stable support level at $0.554, which is the midpoint of the 300% rally witnessed between December 18, 2023, and January 3, 2024.
Also read: Grayscale’s Bitcoin sale unlikely to have driven BTC price lower, profit taking is likely driver
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
