Sei Price Nears End of Death Cross Pattern 5 Months After 50% Gain

Sei has recently seen a strong price increase, marking a significant rise that may be due to growing interest in alternative chains.

This price increase occurred after months of accumulation, and the increase in trading volume could continue to drive prices up. However, the question remains whether this momentum can end the five-month-long Death Cross pattern.

Sei Investors Are Extremely Optimistic

The number of daily transactions on the Sei network has been steadily increasing over the past few months. In fact, transactions have tripled in the past three months, reaching 1.6 million transactions in a recent day.

This increase in altcoin activity shows strong demand for assets and demonstrates investor confidence.

The increasing transaction data reflects growing interest from investors, many of whom may be attracted by Sei's developing ecosystem.

If this trend continues, it could push Sei's price even higher, consolidating the positive momentum seen in the market.

Despite the recent price increase, Sei has been stuck in a Death Cross pattern since January, lasting over five months. This technical pattern occurs when the 200-day exponential moving average (EMA) is above the 50-day EMA, signaling a prolonged downward trend.

However, the recent price increase has stimulated a slight increase in the 50-day EMA, suggesting a possible upcoming trend change.

If the 50-day EMA crosses above the 200-day EMA, it will mark a Golden Cross pattern, indicating a potential shift to a sustainable upward trend.

The possibility of this crossover makes investors hope that Sei can finally escape its previous downward trend, setting the stage for stronger price action.

Sei Price Surges Strongly

At the time of writing, Sei is trading at $0.29, just below the important resistance level of $0.30. This is the highest level in 4 months after a 50% increase in the past week.

The recent price increase has brought Sei into investors' focus, with current attention on whether it can break through the $0.30 resistance.

If Sei successfully converts $0.30 to support, the altcoin could move towards $0.35. This level is crucial to continue the price increase and protect recent gains.

A price increase beyond this resistance would indicate sustainable upward momentum, potentially signaling the end of the downward trend.

However, if investors choose to take profits, Sei could face a correction. A drop below the $0.27 support would indicate weakening momentum, potentially pushing the price lower to $0.24.

A decline to this level would invalidate the current price increase argument, signaling a reversal in the altcoin trend.