Date: Monday, March 10, 2025 | 06:15 AM GMT
The past week has been eventful in the cryptocurrency market, with major developments such as U.S. President Trump unveiling the Crypto Strategic Reserve, signing executive orders for a Bitcoin Strategic Reserve, and hosting a White House Crypto Summit. Despite these factors, the crypto market remains under pressure, with the broader downtrend that began after the November rally continuing to weigh on prices.
This extended correction has put significant bearish pressure on altcoins , including Sei (SEI), a Layer-1 token that has suffered a steep 8% decline today, extending its 90-day drop to 64%.
Source: Coinmarketcap
This sharp downturn has severely impacted investor sentiment, raising concerns about whether SEI can stage a recovery or if more downside is imminent.
Testing Crucial Support
SEI’s weekly chart suggests the formation of a double bottom pattern at a key support zone between $0.19 – $0.26. In December 2024, SEI faced a strong rejection from its $0.7361 resistance level, which triggered a steep decline. Since then, buyers have consistently defended the support zone, but the ongoing sharp sell-off has prevented a sustainable bounce.
Currently, SEI is trading near the bottom of this critical support level at $0.19, making this a make-or-break moment. If the double bottom structure plays out, there is a strong chance of a recovery rally toward the 25-day moving average (MA), which could serve as the next key resistance level.
The MACD indicator is hinting at a possible reversal. While momentum remains bearish, a potential bullish crossover could provide the first sign of a trend shift. However, confirmation is needed with increased buying volume and a break above immediate resistance.
Will This Pattern Spark a Recovery?
If SEI holds this $0.19 – $0.26 support range and confirms the double bottom pattern, a strong relief rally could be in play, with initial upside targets at $0.30 and $0.42. This move would align with historical price behavior, where similar formations have led to strong recoveries.
However, if SEI fails to hold this critical support, a breakdown below $0.19 could result in further declines, with the next significant support sitting at the $0.11 region.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
