SEI has caught investor attention with a 50% price surge this week, reaching a 4-month high and nearing the $0.30 resistance level.
Network Activity Fuels Momentum
The recent price action is supported by rising network activity. Daily transactions on the SEI blockchain have tripled over the past three months, with activity peaking at 1.6 million transactions in a single day. This growth indicates increasing demand and user confidence in SEI's ecosystem.
Approaching a Technical Turning Point
Since January, SEI has been in a Death Cross, indicating long-term weakness. However, the price surge has begun to lift the 50-day moving average, creating the possibility of a Golden Cross which signals a bullish reversal. This crossover could attract more traders and bolster confidence in a continued upward trend.
Resistance and Risk Levels to Watch
Currently trading at $0.29, SEI is on the verge of testing the crucial $0.30 resistance level. If it breaks above and holds this level, analysts believe SEI could target $0.35 in the short term. Investors, however, should be cautious; profit-taking could revert the price to $0.27, with a further drop to $0.24 invalidating the current bullish scenario.
SEI's 50% rally, alongside increasing transaction activity, suggests a potential end to a prolonged downtrend. However, critical levels need to be monitored, as breaches or failures to maintain them could influence future price movement.
