SEI Builds Momentum With On-Chain Growth: Can It Lead To A Breakout?

On-Chain Growth Driving Optimism

• Daily Active Addresses: Surged from 85.7K to 179.3K, reflecting increased user participation.
• Total Value Locked (TVL): Jumped from $174.3 million to $197.7 million, indicating rising confidence in SEI's ecosystem.

This growth in key on-chain metrics suggests a strengthening foundation for the SEI network, bolstering its bullish outlook.

Can It Lead to a Breakout?

From a technical perspective, SEI is forming a bullish pattern on the 2-hour chart, as it consolidates above a key support zone near $0.4664. The chart indicates a falling wedge pattern, which is often a precursor to a breakout.

If SEI can breach the upper trendline resistance, it may rally toward its next target of $0.55, representing a potential 15% upside from its current price.

The RSI indicator is also hinting at a possible trend reversal, as it rebounds from oversold levels. With strong on-chain metrics backing the bullish sentiment, SEI could see accelerated gains in the near term.

Conclusion

As SEI builds momentum on the back of robust on-chain growth and favorable technical patterns, the stage is set for a potential breakout. While the current market environment remains bullish, investors should remain cautious and closely monitor key resistance levels.