Since mid-March, following a roughly 65% drop, the price of Sei (SEI) has been nearly in recovery mode for the last ten days. However, even in an environment where the cryptocurrency SEI bulls continue to show strength, a warning is necessary as there is a significant downward trend in altcoin prices.
Cryptocurrency SEI Price Rapidly Recovers
After hitting a low of $0.4163 on April 14, the cryptocurrency SEI price increased by approximately 50% and the altcoin overcame the resistance of the declining trend line with increasing buying momentum. However, as this upward trend continues, selling pressure is observed at current price levels, limiting buyer momentum. When examining the volume lines on the right, it is seen that there is more downward activity compared to the increase activity in the SEI token.
This trend is highlighted by the Relative Strength Index (RSI) being below the average level of 50 and the Moving Average Convergence Divergence (MACD) being in the negative zone, indicating an increase in the short-term downward trend.
If Bears Take Control
If bears take control, the cryptocurrency Sei price could maintain its downward trend. The altcoin could thus lose instant support levels and effectively fall below the $0.5546 support. In a prolonged downturn, the altcoin could decline to the $0.5000 level, which is 10% below current levels. In the worst-case scenario, the cryptocurrency SEI price could extend its downward trend toward the $0.4683 liquidity zone, which would mean a 25% drop from current levels.
This selling pressure spreading over the daily timeframe could balance the market while supporting recovery and also provide a breakout. Investors should monitor a lower peak in the RSI that could indicate a reversal.
Key Levels to Watch in Case of an Uptrend
SEI for an uptrend, the $0.7 psychological level will be important. If this level is passed, attention will shift towards the $0.8 level. On daily charts, a candlestick closure above this level would represent an approximate 40% climb from current levels. However, such a move should not be interpreted as a definitive indicator of a strong upward trend continuing on its own.
At this stage, the uptrend in the cryptocurrency SEI price might be premature. Should bears take control, it should not be forgotten that the altcoin SEI could fall further and test certain support levels.
