A technical report published on Coin Edition's website stated that the coin $SEI which operates a high-speed Layer-1 network, is showing signs of reaching a major bottom and is strongly defending the key support area at $0.124.
According to a technical analysis provided by chart analyst Ali Martinez, the token #Token has recorded a rare bullish signal, which historically precedes major directional shifts in prices. This development comes at a time when cryptocurrency markets are looking for turning points after periods of volatility, attracting the attention of traders searching for opportunities in potential reversal phases.
The 'strong buy' signal returns to the forefront after a long absence:
According to the site, the SuperTrend indicator issued its first buy signal for SEI since late September, and Martinez noted that other technical indicators align with the SuperTrend signal, indicating the accumulation of bullish momentum, leaving the currency in need of follow-through movement to start a real upward wave.
Using the three-day chart for the SEI/USD pair from TradingView, the analyst highlighted the accumulation of momentum around a historical support for the currency, and despite this support facing multiple tests, the digital currency has not been able to drop below it. The analyst believes that confirming a trend reversal could pave the way for SEI to embark on a new upward journey, targeting a move towards the resistance level just above the price of $0.2.
What the charts reveal about the future of the currency #SEI :
The site report indicated that the formation of a descending channel on the daily chart for the SEI/USD pair in TradingView could allow SEI to rebound from the current support level, which represents a historical turning point for the currency.
It is expected that the rebound from this support could push the digital asset towards a price of $0.26, where the descending channel structure provides a resistance level.
Conversely, it is believed that breaking the current support level downward could expose SEI to further downward movement and revert any potential upward point back to the low recorded in October 2023 at $0.094.
Triangular convergence and entry strategy for traders:
The site explained that the emergence of a triangular convergence could represent a false signal, and advised SEI traders to apply this triangular convergence for entry signal purposes by waiting for the price to retract to the bottom of the triangle before taking buy positions.
These technical developments keep the currency under the traders' microscope, who are critically anticipating a decisive move to break the current trading pattern, while continuing to defend the main support level as a last line that could separate the resumption of the upward trend or entering a deeper downward phase.