SEI faces potential drop to $0.20 amid 50% dip in trading volume; check forecast

The cryptocurrency market was bearish over the weekend, with Bitcoin and other major cryptocurrencies testing new monthly lows. However, the market has since recovered, thanks to the ceasefire deal between Iran and Israel. Despite that, SEI has gone against the market trend. It rallied while others were underperforming, and it is currently undergoing a correction while BTC and others are bullish . SEI is at a crucial juncture as it remains to be seen if it will resume its rally or extends its correction toward new lows. SEI dips below $0.27 after failing to take out the $0.35 high SEI, the native coin of the Sei blockchain, was one of the best performers this week, adding roughly 80% to its value within seven days to hit the $0.33 mark. However, it failed to take out the major high around $0.35 and is currently undergoing a correction. Its rally was fueled by the Wyoming Stable Token Commission shortlisting Aptos and Sei for its stablecoin pilot program. If chosen, Sei could become the blockchain to house the first stablecoin minted and issued by a state in the U.S. Furthermore, SEI’s rally came despite the broader crypto market undergoing a bearish run fueled by the conflict in the Middle East. However, SEI’s rally seems to have halted and the cryptocurrency could decline below $0.20. According to CoinMarketCap, SEI’s trading volume has dropped by 48% over the last 24 hours. This suggests that traders are booking profit following the coin’s recent 80% rally. The declining volume could contribute to SEI’s price dropping further. SEI could test the TLQ at $0.19 before resuming its rally The SEI/USD 4-hour chart is bullish and efficient thanks to the coin’s rally over the past few days. However, the buyers seem to be exhausted, with the sellers in control when we switch to the lower timeframe. At press time, the price of SEI stands at $0.2621, down from its weekly high of $0.3388. The Relative Strength Index (RSI) has dropped from a high of 86 (overbought) and now stands at 51 (neutral), indicating that the buyers are losing control of the market. Furthermore, the blue and red Moving Average Convergence Divergence (MACD) lines have swapped places and are now heading into negative territory, indicating a possible selling pressure. If the bearish momentum persists, SEI could break below the $0.20 level and test the transactional liquidity (TLQ) zone at $0.1909. However, in the event of an extended bearish run, SEI could drop to $0.17, thereby losing the gains it accumulated over the last seven days. The broader market remains bullish, and this could help SEI push higher. If the bulls regain control, SEI could rally toward the $0.3500 high in the near term. However, this depends on the broader crypto market’s performance. The post SEI faces potential drop to $0.20 amid 50% dip in trading volume; check forecast appeared first on Invezz

Source: Invezz