SEI price has shown strength in its recovery rally, bouncing back after finding support above the 70.5% Fibonacci level at $0.6375. With momentum picking up, there is potential for a 20% climb in SEI’s market value, targeting the market range at $0.8797. This bullish outlook will be invalidated if SEI breaks and closes below the 50% Fibonacci level at $0.4692.
Despite the recent market crash, SEI price has managed to survive and even outperform Bitcoin’s decline on January 2. Investors took advantage of the dip to book profits, allowing the bulls to regroup and refresh their buying momentum.
The support at $0.6375 has held strong, and Sei price could reclaim the range high at $0.8828. The northbound Relative Strength Index (RSI) and positive Awesome Oscillator (AO) further support the bullish thesis, indicating ongoing bullish presence in the SEI market.
On-chain metrics also reinforce the bullish outlook. The percentage of stablecoin total supply held by whales and the Tether market capitalization both suggest intentions to buy SEI. Additionally, the volume metric shows a significant increase in SEI token transactions, further enhancing the bullish fundamentals.
However, it’s worth noting that the histogram bars of the AI are flashing red, indicating some bearish activity. The falling Average Directional Index (ADX) also suggests a weakening trend, increasing the possibility of a correction.
If selling pressure intensifies, SEI price could drop below the 70.5% retracement level, potentially targeting the critical retracement level at 61.8% Fibonacci. To invalidate the bullish outlook, SEI must record a candlestick close below the 50% Fibonacci level at $0.4692.
This could lead to further downside, with SEI price revisiting the 38.2% Fibonacci level at $0.3723 or even the 23.6% Fibonacci level at $0.2524.
In summary, SEI price is showing potential for a strong rally, with a 20% climb on the horizon. However, caution is advised as a correction is also plausible.