SEI (coin review) has advanced from $0.26 to $0.52 since September 17, 2024, and the current price stands at $0.44. This bullish trend implies intense market purchasing pressure and suggests traders are currently bullish on SEI’s prospects.
SEI remains supported after Bitcoin’s price advanced above $65,000 and crypto analysts link this positive trend to the Federal Reserve’s decision to begin its monetary easing cycle last month. So where is the price of SEI going next, and what can we expect from October 2024?
Today, Crypto Lists will discuss SEI price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
One of the fastest blockchains
Sei Network is a decentralized, Layer 1 blockchain specifically designed to power decentralized finance (DeFi) applications. Its primary focus is to provide an efficient infrastructure for trading and financial transactions on decentralized platforms. Sei Network isn’t built on top of another blockchain (like Layer 2 solutions) but instead offers its own architecture and it is designed to offer high throughput, low latency, and enhanced scalability, which are essential for DeFi services.
Sei Network is one of the fastest blockchains in existence, boasting a theoretical speed of executing 12,500 transactions per second and a block finality time of 380 milliseconds. This makes Sei particularly efficient for applications that require real-time trading, such as order books, AMMs (Automated Market Makers), and derivatives platforms.
It is important to mention that Sei is built using the Cosmos SDK, which allows interoperability with other blockchains within the Cosmos ecosystem. It also relies on the Tendermint consensus algorithm, ensuring secure, fast, and efficient transaction finality. Sei Network employs advanced parallelization techniques to handle multiple transactions and operations simultaneously. This allows for much higher scalability and lowers the chance of bottlenecks, which can hinder performance on other blockchains.
The native token of the Sei Network is SEI, which is used for various purposes like paying transaction fees, staking to secure the network, and voting on network proposals. Like many other cryptocurrencies, SEI remains supported after Bitcoin’s price advanced above $65,000, and in less than two weeks, SEI has increased nearly 100% of its value. The performance of digital assets shocked market watchers as different products witnessed a significant second week of positive inflows.
The Federal Reserve’s decision gave cryptocurrencies a boost
Federal Reserve kicked off its monetary easing cycle last month with a half-a-percentage point reduction and forecasted more interest rate cuts were on the horizon. Fed officials are confident that inflation is no longer a major threat, allowing them to support other economic objectives, like boosting employment or encouraging investment. This decision signals the central bank’s confidence that the economy can handle lower borrowing costs without overheating.
After the Fed statement, the probability of a November rate cut further increased and it is important to say that many crypto analysts link this surge in the crypto market to the Federal Reserve’s decision. Both equities and cryptocurrencies defied their usual September slump, outperforming expectations, and going forward, expectations for risk assets are currently positive.
Spot ETF inflows remain consistently positive while crypto analysts think that the upcoming U.S. elections can be positive for cryptocurrencies. The increasing focus on the digital economy and technological innovation by political candidates could further the development and adoption of blockchain technologies. If elected officials push for digital transformation, cryptocurrencies could benefit as a key component of this shift.
The Fear & Greed Index, a widely used tool for assessing market sentiment in the cryptocurrency sector has increased in the period of the last two weeks reflecting strong investor interest and confidence. In the weeks to come, SEI will remain significantly influenced by the general situation in the cryptocurrency and hence, engaging in investments related to SEI demands deliberate consideration. Undertaking comprehensive research and evaluating one’s risk tolerance are fundamental measures before committing to any investments within this sphere.
Technical analysis for SEI
SEI has advanced from $0.26 to $0.52 since September 17, 2024, and the current price stands at $0.44. This upward trend indicates strong buying pressure in the market, showing that traders are feeling optimistic about SEI’s future.
Important support & resistance levels for SEI
On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. SEI remains in a “BUY” zone, and if the price jumps again above $0.50, the next target could be resistance at $0.60. The current support level is $0.40, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to the next support that stands at $0.30.
What speaks for the rise in the SEI price
Sei Network aims to bridge the gap between centralized and decentralized exchanges by offering similar levels of efficiency and user experience, making it an attractive platform for traders and developers in the DeFi space. As the demand for DeFi platforms increases, Sei’s specialized infrastructure may attract more developers and users, driving up the token’s value. Traders are currently bullish on SEI’s prospects and if the SEI trading volume continues to rise, then the buying pressure can push the price toward new highs.
What indicates the downfall of SEI
Several factors could indicate a potential downfall or decline in the price and adoption of SEI cryptocurrency. These risks include competition, regulatory concerns, market trends, and technical challenges. The blockchain space is highly competitive, especially for Layer 1 platforms targeting decentralized finance (DeFi). SEI faces tough competition from established blockchains like Ethereum, Solana, Avalanche, and other Cosmos-based networks. If SEI fails to differentiate itself significantly or attract a large enough user base, its growth prospects could stall. The price of SEI is currently above $0.40 support, but a break below this level would indicate that SEI could test another strong support level that stands at $0.30.
What do analysts and experts say?
Crypto analysts expect that the SEI crypto price could rise due to its strong focus on DeFi, innovative technology, growing ecosystem, and favorable market conditions. These factors create an environment that encourages adoption and drives demand for the SEI token. At the same time, the Federal Reserve’s decision to lower interest rates last month provided a boost to cryptocurrencies, making riskier assets like digital currencies more appealing to investors. With borrowing costs down, market liquidity increases, prompting investors to seek higher returns in assets such as crypto. Crypto analysts believe that if Bitcoin can maintain its upward momentum in the coming weeks, it will likely have a positive impact on the price of SEI and the broader cryptocurrency market.
