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SEI defied the post-holiday lull in the markets to hit a new all-time high of $0.589 before retracing to trade at $0.6036, as of the time of writing. The new all-time high was produced by a 30% pump from the $0.433 support level. This took SEI past the key $0.5 resistance with bulls establishing their dominance.
SEI is an open-source Layer 1 blockchain that specializes in digital assets trading. SEI blockchain directly supports DEXes (decentralized exchanges) by delivering high speed, low fees, and maximum reliability. The Sei Network recently surpassed 1 billion transactions, demonstrating the massive growth of its blockchain.
How does a growing ecosystem affect SEI’s price?
The SEI token is the primary currency for activities on the Sei blockchain. With transactions skyrocketing and planned upgrades like EVM compatibility, Sei is positioning itself to attract massive interest from decentralized app developers.
This could potentially extend SEI’s bullish run with the $1 mark looking increasingly likely in Q1 2024.
Technically, SEI has traded above the 50 EMA since early December. This sustained bullish run has resulted in a 150% upside in December. With boundless opportunities opening up in the Sei ecosystem, demand is expected to ramp up significantly for SEI, translating to further price gains.
Intraday traders can consider long entries at the current market price (CMP) with short-term targets at $0.7 - $0.75. Long-term traders can expect SEI to reach $1 if the current bullish momentum continues.
The Relative Strength Index’s (RSI) sharp rise from 53 to 71 highlighted the influx of significant buying pressure which showed the market’s bullishness on SEI.
On the flip side, a price correction might produce a retracement to the new support level of $0.5. If this plays out, traders can exercise caution by waiting for a bullish candle close above the $0.5 support. A bearish candle close below this key support level could signal momentum shifting bearish in the near term.
If the Sei team continues to deliver improved functionality on its blockchain along with long-term adoption and development progress, this could sustain the massive upside for the SEI token.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions
