SEI, the native token of the Sei blockchain, has been experiencing a unique market trend that has left investors scratching their heads. Despite a surge in trading activity, the token has seen a sharp drop in price, creating a paradoxical situation that raises questions about the future direction of the token.
Active Address Surge While Price Drops
The recent price action of SEI has been closely monitored by investors, as the token gained popularity towards the end of June. This increase in trading activity initially boosted the token’s value, but profit-taking by bears has led to a sustained bearish trend since the beginning of the month.
The number of daily active addresses on the SEI platform has reached a peak, indicating strong trading activity. However, the disconnect between this on-chain growth and the falling price suggests that investor sentiment remains bearish. The upcoming listing of SEI on Japanese exchanges by the Japanese Financial Services Agency (JFSA) is expected to drive further active addresses next week, potentially increasing volatility in the market.
SEI Price Prediction: Will it Rise Above $0.5?
The recent momentum in the SEI price pushed the token above the 200-day Moving Average (MA) and turned the Gaussian Channel bullish, signaling a potential shift in the bearish trend. Despite reaching a local peak above $0.3, a drop in volume has caused the price to retrace to a critical support level at the 20-day MA.
The current price action of SEI shows a bullish flag pattern in the daily chart, but technical indicators do not confirm a breakout. While the price remains above the Ichimoku cloud, the conversion line has shown a bearish divergence, indicating increasing bearish pressure. The MACD also suggests a decrease in bullish momentum, with a potential bearish crossover on the horizon.
As the bearish sentiment persists, a drop below the support zone between $0.2683 and $0.2517 could push the price towards $0.21. On the other hand, a rebound could propel the token above $0.4, opening the door for a potential rally towards $0.5.
In conclusion, the conflicting trends in trading activity and price movement of SEI present a challenging scenario for investors. The upcoming events and market dynamics will play a crucial role in determining the future direction of the token’s price.