SEI Token Defends Key Support as Technical Indicators Flash 'Buy'

Source: CryptoNewsNet Original Title: SEI Token Defends Key Support as Technical Indicators Flash ‘Buy’ Original Link: SEI, the high-speed Layer-1 blockchain, is showing signs of a macro bottom as it defends the pivotal $0.124 support region. According to technical analysis from chart analyst Ali Martinez, the token has printed a rare bullish signal that historically precedes significant trend shifts.

A Strong Buy Signal for SEI Token

The SuperTrend indicator has printed its first buy signal for SEI since late September. Martinez noted that other indicators are aligning with the SuperTrend signal, suggesting a momentum build-up and leaving SEI in need of a follow-through for an upsurge to kick in.

Using the 3-day SEIUSD chart from TradingView, Martinez highlighted a momentum build-up around a historical support for SEI. Despite several tests on the support, the cryptocurrency has failed to drop below it, and the analyst believes a confirmed reversal would see SEI initiate a new rally, climbing toward the resistance slightly above the $0.2 price.

What Chart Formations Say About SEI

Another analyst has presented a similar projection for SEI, citing a descending channel formation on the SEIUSD daily chart on TradingView. According to the analyst, SEI could rebound from the current support, which marks a historical turning point for the cryptocurrency. He predicts that a bounce off this support could see the crypto asset head toward $0.26, where the descending channel structure provides resistance.

Meanwhile, the analyst believes a break below the current support could expose SEI to further downward movement and reset the rally’s starting point to the October 2023 low of $0.094. However, the analyst highlighted an emerging triangle convergence, which could represent a false signal. According to him, SEI traders can apply the triangle convergence for entry signal purposes by waiting for the price to pull back to the bottom of the triangle before taking buy positions.