- SEI had a strong bullish outlook on the higher time frame charts.
- Prices could continue to fluctuate between $0.6-$0.75 to clear out overly eager bulls.
Sei [SEI] rose 298.9% from a low on December 18 to a peak on January 3. Since then, the price has retreated to the $0.6 demand zone. The bulls continued to have the upper hand and demand for the token was high.
Market sentiment remained bullish despite short-term volatility. Two key areas of support and resistance were highlighted on SEI’s one-day chart. The bulls are likely to drive prices to $1 and above in the coming weeks.
SEI’s price action chart showed that buyers have been tireless
Source: SEI/USDT on TradingView
The market structure on the one-day chart was solidly bullish. The most recent higher low was set at $0.55 on January 3.
Selling pressure on the day caused prices to retreat to a $0.55 demand zone (cyan box), which was a short-term consolidation zone on December 31.
At the time of writing, SEI was trading at $0.7305. The $0.6745 and $0.63 were significant this past week. A retest of these levels would likely lead to a price increase. The RSI was bullish at 61, agreeing with the technical structure.
The OBV has been marching north at an impressive pace since November. However, growth has slowed over the past ten days as momentum also weakened.
Still, the lack of intense selling pressure suggested that SEI was consolidating before another rally.
Source: Coinalyse
Data from Coinalyze indicated a steady pace of selling in the spot markets. Spot CVD has been in a solid downtrend this past week as prices remained stuck in the $0.6-$0.75 region.
On the other hand, Open Interest has evolved along with prices. This suggested that with every price increase, speculators were willing to bet on more price gains.
It underscored the possibility that futures market participants were still bullish and ready to ride into the next rally.
How much is 1, 10 or 100 SEI worth today?
Ironically, this eagerness could leave SEI stuck in a range longer to take out these traders and chase their stop-loss orders.
The idea of consolidation meant that a move towards the $0.67, $0.63 or $0.55 level would be a buying opportunity. Traders can wait for such a dip to take positions and practice good risk management when sizing their positions.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.