Is Major Change Happening?

SEI has successfully broken out of an extended falling wedge pattern, marking its first higher high in several weeks. This critical technical retest lays the groundwork for a potential bullish continuation.

SEI (SEI) had been trapped in a falling wedge for an extended timeframe, persistently posting lower highs and lower lows, indicative of a downtrend. However, a recent breakout has shifted this narrative. For the first time in weeks, SEI has recorded a higher high, signaling a technical reversal and suggesting the early onset of a new bullish market structure.

Key Technical Highlights

• Bullish Breakout: SEI has broken free from its falling wedge, confirming a higher high and indicating a bullish reversal.
• Retest Zone: The price is expected to return to the 0.618 Fibonacci retracement at the value area low to establish a higher low.
• Upside Potential: Should a higher low be confirmed, a move towards the range high could result in an 80% upside from current levels.

In-Depth Analysis

The falling wedge pattern that restricted SEI for weeks has finally been breached. With this breakout, the price action has escaped the downward resistance and established a higher high, confirming a potential shift in market structure from bearish to bullish.

What follows is equally important. For the breakout to be validated and maintained, SEI must create a higher low, preferably near the 0.618 Fibonacci retracement coinciding with the current range’s low. This area serves as a crucial support zone and represents a technical sweet spot where bullish momentum could rekindle if buyers step in.

Monitoring volume trends will be essential. An increase in volume would support a bullish continuation and reflect growing confidence in the breakout. Conversely, low volume might suggest a failed breakout or weak trend strength.

If SEI can sustain this potential higher low, the upside prospects are significant. The range high becomes the next logical target, potentially providing nearly an 80% gain from the current levels. This would position the asset in a notably bullish context, likely attracting further interest from market participants.

What to Anticipate in Upcoming Price Movements

SEI is at a pivotal technical juncture. A successful retest and formation of a higher low at the 0.618 Fib zone would validate a new bullish structure and set the stage for a substantial upward move. Conversely, failing to hold this zone could nullify the breakout and push the price back toward previous range lows. Stay alert to volume and structural developments as the forthcoming candles unfold.