SEI Struggles to Reverse Bearish Trend as Price Holds Near Critical Levels

• SEI struggles with a bearish trend, testing key support at $0.2026. A break below could push prices lower, while a bounce remains uncertain.
• Liquidity grabs at support hint at potential reactions, but weak RSI and low volume suggest buyers lack strength for a strong reversal.
• A bullish breakout above $0.4500 could signal recovery, but downside risks to $0.15 persist if momentum and sentiment remain weak.

SEI’s price action remains volatile as traders assess its potential bottom. Currently, SEI/USDT trades around $0.2307 on Binance, showing a modest 1.23% increase. However, its long-term downtrend remains intact, with no confirmed reversal signals. The token previously surged past $1.10 in late 2023 but has since lost ground. Its current trajectory suggests a continuation of lower highs and lower lows.

Liquidity Zones and Market Reactions

A key support level at $0.2026 has been tested, triggering liquidity grabs. This move led to stop-loss orders being activated, creating potential for a reaction. Historically, liquidity zones attract strong interest, either resulting in a reversal or a further breakdown. However, the market structure remains bearish, and buyers must step in for a significant recovery.

Besides, RSI indicators suggest weakening momentum, confirming SEI’s struggles. Volume levels have also declined, reflecting reduced buying pressure. If the $0.2026 support level holds, SEI could witness a short-term bounce. However, failure to maintain this level might push the price further down.

Projected Scenarios and Potential Reversal

Market analysts present two possible scenarios for SEI’s price movement. The bullish outlook suggests a breakout above a descending trendline, leading to a rally toward $3.5. This scenario requires strong momentum and sustained buying interest. The first key resistance levels stand at $0.4500, $0.8000, and $1.5000. A confirmed breakout would validate a bullish reversal.

On the downside, SEI could revisit its recent lows before any upward momentum builds. The worst-case scenario projects a drop to $0.15 before any potential recovery. The macroeconomic environment plays a crucial role in determining market sentiment. If global conditions remain unfavorable, SEI’s price might struggle to gain traction.

Moreover, the timing factor remains critical. If a sharp V-shaped recovery does not occur in the coming months, SEI could take longer to reach its targets. Investors must play cautiously, adjusting positions according to market conditions.