Analyst Sees SEI’s Potential Drop, Eyes Key Support Levels

• SEI demonstrates a descending triangle pattern, indicating a continuation of the bearish trend.
• A crucial support level at $0.4659 was breached, suggesting the potential for further price declines.
• The $0.3600 to $0.3300 range is noted as a significant support zone that could dictate future price movements.

Sei, a Layer 1 project, continues to struggle as crypto analyst Nebraskangooner details a bleak technical outlook. The trend has been notably bearish since hitting early highs in February 2024, with a consistent pattern of lower highs and lower lows signaling potential further losses.

The analysis shows a descending channel formation starting in April, pointing to sustained seller control. This pattern indicates reduced buying interest at higher prices and is typically a bearish indicator. 

Following this trend, SEI’s price recently fell below the critical support level of $0.4659, which had previously acted as a robust rebound base. This breach could pave the way for further price drops unless SEI reclaims this level quickly.

Nebraskangooner highlights a significant support zone from $0.3600 to $0.3300. If prices reach this zone, it might attract buying activity, possibly stabilizing the price or even causing a rebound. The market’s reaction in this zone will be vital for determining SEI’s mid-term price direction.

Sei witnessed a price decrease of 2.82% in the past day, settling at $0.4664. Despite this recent dip, Sei’s market activity has shown significant engagement, with a 22% increase in trading volume, amounting to $102 million. The current market cap is approximately $1.36 billion, positioning Sei 64th in market cap rankings among cryptocurrencies.

The 24-hour technical indicators for SEI price show a price decrease. The Moving Average Convergence Divergence (MACD) indicator shows a negative trend, indicating potential bearish momentum. 

The MACD line is at -0.0167, while the signal line is at -0.0035, suggesting a weakening buying pressure. The Relative Strength Index (RSI) is 41.67, indicating that SEI is in the lower neutral zone.