SEI token has surged by an impressive 20% in just 3 days, driven by the WLFI fund and the Trump family's influence. Is this a fleeting surge or the start of a major trend? Dive in for insights.
World Liberty Financial (WLFI) shook the altcoin market by acquiring 4.89 million Sei (SEI) tokens for $775,000. This move resulted in a 20% increase in the SEI price, but the momentum did not sustain.
According to Arkham Intelligence data, WLFI’s trading portfolio made this purchase on April 12, funded in USD Coin (USDC) from the project’s main wallet. This acquisition adds to an expanding list of altcoins held by WLFI, including Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Ondo Finance (ONDO), Avalanche (AVAX), Ethena (ENA), Movement (MOVE), Chainlink (LINK), and Wrapped Bitcoin (WBTC). Overall, Lookonchain estimates that WLFI has invested $346.8 million in 11 different tokens.
In response to WLFI’s purchase, the SEI price surged 20% from close to close, going from $0.15 to $0.18. This marks its highest level since March 29. However, the daily chart analysis reveals a well-established downtrend since the beginning of December. Since then, the token has consistently formed lower highs and lower lows, with each bounce weaker than the previous one. During this period, SEI has remained below the 20-day exponential moving average, with any attempt to break above being swiftly rejected.
Currently, the SEI price is trading just above a horizontal support around $0.17, at $0.1773 at the time of writing. This level has seen multiple recent interactions, suggesting it is a significant area where buyers step in to halt further declines, at least temporarily. Additionally, it crossed the $0.18 mark following WLFI’s purchase announcement. The price is now back above the 20-day moving average, although the sustainability of this move is yet to be determined. If the $0.17 support breaks, the next level to watch will be $0.15.
The SEI token acquisition by WLFI caused a 20% price increase, but this movement failed to sustain against key resistance. Despite this action, SEI remains in a well-established downtrend for several months, forming lower highs and lower lows.
Although this rebound allowed the SEI price to once again cross the 20-day moving average, it is essential to monitor if this breakthrough will hold. In case of a breakdown below the $0.17 support, the next support level to watch is $0.15. Overall, the downtrend bias still seems to prevail on SEI despite this significant acquisition by WLFI.
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