Sei (SEI) Holds Key Support After Major Drop — Will This Pattern Trigger a Recovery?

Sei Token Shows Signs of Recovery Amid Crypto Market Rebound and Trump-Linked Investment

12 April 2025 — The global cryptocurrency market has endured a volatile start to the year, with major digital assets suffering steep losses. Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, posted its worst-ever first-quarter performance, falling by 45%. This sharp decline sent ripples across the altcoin landscape, dampening investor sentiment and prompting a wave of caution among traders.

However, signs of recovery are beginning to emerge. Renewed optimism followed an unexpected political development — a 90-day pause on tariffs announced by United States President Donald Trump. The announcement, aimed at easing global trade tensions, has had a ripple effect on broader risk markets, including cryptocurrencies. Amid this improving sentiment, one altcoin in particular has begun to attract attention: Sei (SEI), a Layer-1 blockchain token.

Sei Gains Traction Following Trump-Linked Investment

SEI surged by 10% in a single day following news that World Liberty Fi, a project closely associated with President Trump, had purchased approximately $775,000 worth of the token using USDC, a stablecoin pegged to the U.S. dollar. The high-profile investment has sparked renewed interest in Sei, which had previously seen its value decline by over 57% since the start of the year.

Source: CoinMarketCap

The token's dramatic fall followed a remarkable 262% rally in late 2024, which peaked in early December at $0.7360. That momentum proved unsustainable, and SEI subsequently experienced an 82% correction, bottoming out around the $0.13 mark. However, recent price action indicates that a turnaround may be in the early stages.

Technical Indicators Point to Possible Reversal

Analysts have noted that SEI’s price chart is beginning to exhibit the formation of a rounding bottom, a classic reversal pattern characterised by a long, curved base that typically signals a shift from bearish to bullish sentiment. The pattern often reflects a period of market consolidation following heavy selling pressure, after which a steady recovery takes hold.

Currently trading at approximately $0.169, SEI appears to be slowly climbing from its recent lows. The key level to watch is the 50-day moving average, which acts as dynamic resistance and currently sits near the $0.20 mark. A clear and sustained break above this level could serve as confirmation of the rounding bottom pattern and potentially set the stage for a bullish rally.

Technical indicators are supporting this view. The Moving Average Convergence Divergence (MACD) indicator, a widely used momentum tracker, is showing early signs of a bullish crossover — where the MACD line crosses above the signal line. This crossover is often interpreted as a sign of strengthening upward momentum and waning bearish pressure.

Potential for a Return to Previous Highs

If SEI manages to breach the 50-day moving average and maintain upward momentum, technical projections suggest the token could attempt a retest of its previous high near $0.73. This would represent a more than fourfold increase from current levels, albeit dependent on continued positive sentiment and broader market stability.

Such a rally would not be without precedent. Rounding bottom patterns, when confirmed, have historically led to substantial gains in both equities and digital assets. Analysts caution, however, that these outcomes are far from guaranteed. The cryptocurrency market remains highly sensitive to macroeconomic developments and regulatory uncertainties.

Risks and Cautions Remain

Despite the encouraging signs, market participants are being advised to remain vigilant. Failure to break above key resistance levels or a sudden loss of support could trigger another wave of selling. Moreover, with the broader crypto market still recovering from a severe downturn, SEI’s prospects will likely be influenced by external factors beyond its own ecosystem.

Source: TradingView

In addition, the long-term utility and adoption of the Sei blockchain remain under scrutiny. While the network has positioned itself as a high-performance Layer-1 solution designed for trading applications, it continues to face stiff competition from more established platforms such as Solana, Avalanche, and Ethereum.

Conclusion: A Pivotal Moment for SEI

As Sei attempts to carve out a new trajectory following months of decline, all eyes will be on whether it can capitalise on this momentum. The token’s recent rebound, boosted by a high-profile purchase and emerging technical patterns, presents a compelling narrative. Yet, it must navigate a fragile landscape shaped by investor psychology, macroeconomic headwinds, and the ever-evolving dynamics of the cryptocurrency market.

The coming weeks could prove critical in determining whether Sei’s resurgence marks the beginning of a sustained bullish phase — or simply a brief respite in an ongoing downtrend.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.