SEI Flashes Major Reversal Signal – Bulls Need to Hold This Level

Key Takeaways

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  SEI is positioned at a crucial support level that could validate a double bottom formation.
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  A successful breakout above $0.34 would indicate a strong bullish continuation.
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  SEI is demonstrating relative strength compared to Bitcoin during the current market correction.

The asset, currently trading at $0.1337, has experienced a decline of over 12% in the past week. However, analysts suggest that this pullback might be setting the stage for a bullish reversal.

Double Bottom Pattern Emerges as Key Support is Tested

Market sentiment surrounding SEI has heightened as on-chain and chart analysts have identified a potential double bottom pattern. This classic formation typically signals trend exhaustion and a potential reversal. For this pattern to be confirmed, SEI must hold its current support level and demonstrate a convincing rebound.

Crypto market analyst Ali shared a chart on social media illustrating this pattern, highlighting the second low as a critical point. If buyers successfully defend this area, Ali's projection indicates a possible rally towards the $0.34 breakout zone. Clearing this level could pave the way for significant upside potential in early 2026.

SEI/BTC Pair Shows Relative Strength Amidst Market Pullback

Another prominent analyst, Michaël van de Poppe, described the current price region as a "good area for entry zones." He noted that the SEI/BTC pair has not experienced as sharp a decline as anticipated during the recent market downturn.

Van de Poppe suggests that SEI may be exhibiting early signs of relative strength. He believes that a rotation could accelerate quickly once Bitcoin regains upward momentum. However, he also cautioned that volatility is likely to remain elevated, implying that wide trading ranges should be expected.

Liquidity Remains Strong as Bulls and Bears Compete for Control

Despite recent price weakness, market participation around SEI remains robust. The asset recorded $85.23 million in 24-hour trading volume, indicating that liquidity and interest are sustained even during corrective phases. SEI currently holds the #69 position by market capitalization, with a valuation of $852.2 million.

At present, the market's attention is focused on the support zone that underpins the potential double bottom pattern. A sustained rebound from this level could decisively shift market sentiment. Conversely, a breakdown below current levels would invalidate the bullish setup and could expose the token to further downward pressure.