SEI has finally broken out of its long-standing falling wedge pattern, making its first higher high in weeks. This move hints at a major shift in momentum, possibly marking the beginning of a new bullish phase.
SEI Breaks Falling Wedge Pattern
For several weeks, SEI traded within a tight falling wedge, a common bearish pattern defined by lower highs and lower lows. However, that downtrend now seems to be reversing.
The recent breakout above resistance has confirmed a new higher high—a strong sign that market structure is turning bullish.
Key Levels to Watch After the Breakout
Now that SEI has cleared the wedge, the focus shifts to a crucial technical retest. The price is expected to pull back to the 0.618 Fibonacci retracement level, which aligns with the value area low on the chart. This zone is a likely candidate for forming a higher low.
If the price holds here, it could set the stage for a massive 80% upside, targeting the range high.
Volume Will Confirm the Next Move
Momentum alone isn’t enough. For this SEI price breakout to hold, trading volume must rise. Strong volume confirms buyer confidence and increases the chances of a sustained move.
If volume fades, the breakout could fizzle out, returning SEI to previous lows.
Bullish Scenario: What’s Next?
If SEI forms a solid higher low around the Fibonacci support, the path to the range high opens up. This would mean nearly double-digit gains from current prices and place SEI in a clear bullish trend.
On the flip side, if the price fails to hold this key support, the recent breakout may prove to be a false signal, and downside risk could return.
Final Thoughts
SEI now stands at a technical crossroads. A confirmed higher low would validate the breakout and spark renewed bullish momentum. But without follow-through, the bears may regain control. Traders should watch volume trends and support levels closely over the coming days.
