Key Takeaways
SEI seemed to have a bullish long-term outlook, but its momentum has been interrupted once again by a range formation. A price drop below $0.3 would be worrisome for the altcoin’s bulls.
SEI has been unable to breach the $0.35 local resistance. Over the past 24 hours, the altcoin shed 5.5% of its value, with the crypto approaching the lows of a three-week range.
In fact, the technical indicators did not show that a bullish reversal was imminent anytime soon.
Source: SEI/USDT on TradingView
The 1-day chart highlighted a bullish breakout in the final week of June. The performance in early July was also bullish as the token raced towards the $0.38-level and past the $0.347-resistance. However, SEI was stopped abruptly in its tracks at $0.37.
Over the past three weeks, the altcoin has traded within a range that reached from $0.317 to $0.37. The mid-range level coincided with the $0.347 resistance, marking it as a strong horizontal level in control of the bears.
The CMF has been around 0 over the past few days, showing that neither the buyers nor the sellers have consistently had the upper hand. The A/D indicator also lacked a trend over the past month.
The Awesome Oscillator also slipped towards zero to indicate that bulls have lost strength in recent days. Put together, the indicators seemed to imply that the range formation may be likely to continue.
Is SEI worth bidding, even though it lacks momentum?
Source: SEI/USDT on TradingView
Yes, especially for traders. Investors can do their research on the project’s long-term prospects. Swing traders would find enough evidence for a buying opportunity on the 4-hour price chart.
The bullish order block at $0.31 and the range low appeared to be a strong demand zone too. Hence, even though the CMF showed heavy selling pressure at press time, a retest of this demand zone could offer a good buying opportunity.
Traders should wait for a bullish reaction from the highlighted area by looking at the 1-hour or lower timeframe charts. This may be a gauge of the potential for a bullish recovery. Blindly bidding a retest of the $0.31 area might hurt swing traders since a Bitcoin [BTC] pullback could invalidate this range formation setup.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
