Markets
Sei Price Consolidation Predicts 40% Crash as Crypto Market Turns Bearish
- Sei price is consolidating in a descending triangle pattern.
- A breakout of this pattern predicts a 40% crash to $0.271.
- A quick reversal of the $0.560 hurdle towards support will invalidate the bearish thesis.
Sei (SEI) price online consolidation is coming to an end, which could soon lead to a volatile breakout. SEI investors should be cautious as the crypto market outlook appears bleak.
Read also : Sei Price Action Forecasts Opportunity to Accumulate SEI
SEI price nears a breakout
SEI price action between April 16 and June 8 created five lower highs and three even highs. Connecting these swing points using trendlines shows the formation of a descending triangle pattern. This downtrend predicts a 42% crash, obtained by adding the distance from the first swing high and swing low to the breakout point of $0.467.
The forecast target is at the lower limit of the weekly imbalance, extending from $0.350 to $0.265. The confluence of the theoretical objective coupled with the weekly imbalance makes it a good accumulation level.
The Relative Strength Index (RSI) is struggling below the average level of 50, suggesting that the bulls are not grouped together. If this situation continues, theoretical predictions could come into play.
SEI/USDT 1-day chart
Although the overall market outlook is bearish, if the price of Bitcoin (BTC) climbs, it could ruin this bearish outlook. In such a case, if SEI price produces a decisive daily close above $0.560, it would create a higher high and invalidate the bullish thesis.
This development could further see SEI price attempt to retest the $0.649 hurdle. after a 16% movement.