SEI has successfully broken free from a prolonged falling wedge pattern, marking its first higher high in weeks. This significant technical retest lays the groundwork for a potential bullish continuation.

For an extended duration, SEI (SEI) was ensnared in a falling wedge formation, consistently printing lower highs and lower lows—classic signals of a downtrend. However, a recent breakout has shifted the narrative. For the first time in weeks, SEI has reached a higher high, indicating a technical reversal and suggesting the early stages of a new bullish market structure.

Key Technical Highlights

• Bullish Breakout: SEI has successfully exited its falling wedge and confirmed a higher high, indicating a bullish reversal.
• Retest Zone: The price is expected to revisit 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 to the range high could yield an 80% upside from current levels.

In-Depth Analysis

The falling wedge pattern that constrained SEI for weeks has finally been broken. Following the breakout, price action has escaped the downward-sloping resistance and established a higher high, confirming a potential transition in market structure from bearish to bullish.

Equally important is what comes next. To validate and sustain the breakout, SEI must form a higher low, ideally near the 0.618 Fibonacci retracement, aligning with the value area low of the current range. This area serves as a critical support zone and represents a technical sweet spot where bullish momentum could resume if buyers step in.

Monitoring volume behavior will be essential. An uptick in volume would strengthen a bullish continuation and reflect growing confidence in the breakout. In contrast, a lack of volume may indicate a failed breakout or weak trend strength.

If SEI can maintain this potential higher low, the upside opens significantly. The range high becomes the next logical target, possibly offering nearly an 80% gain from the current levels. This would position the asset in a notably more bullish context, potentially attracting further interest from market participants.

What to Anticipate in Upcoming Price Movements

SEI stands at a pivotal technical juncture. A successful retest and formation of a higher low at the 0.618 Fib zone would confirm a new bullish structure and facilitate substantial upward movement. Conversely, failing to hold this zone could invalidate the breakout and revert the price to previous range lows. Remain vigilant regarding volume and structural developments as the next few candles unfold.