The cryptocurrency market saw a challenging start to the year, with Layer-1 token Sei (SEI) dropping over 60% in the past three months. Despite this, as SEI tests a critical demand zone and unveils recent developments, a potential rebound could be on the horizon.
On April 2nd, SEI announced the launch of the Sei Development Foundation, a non-profit organization based in the United States aimed at accelerating growth and awareness of the Sei protocol. This initiative aims to provide strong financial and technical support to developers building on the blockchain, fostering innovation and adoption.
Introducing the Sei Development Foundation, a U.S. nonprofit organization headquartered in Manhattan, the financial capital of the world
— Sei
Established by Sei Foundation, the Sei Development Foundation will provide the infrastructure required for institutional adoption and for… pic.twitter.com/iHm0Lg71wd(@SeiNetwork) April 2, 2025
By establishing this foundation in the United States, the L1 blockchain positions itself as a key player in the evolution of the regulatory and technological landscape, which could enhance investor confidence and long-term growth of the ecosystem.
Initially, the token tracked SUI price movements, displaying a similar breakout pattern. However, SEI faced rejection at the $0.73 price level on December 4th (marked in red), leading to a sharp drop.
Unlike SUI, which gained 222% after breaking through a key resistance level, the token failed to sustain its momentum, resulting in a 77% drop. The token has now entered a critical demand zone between $0.24 and $0.10, currently trading around $0.16.
This is a crucial juncture. Historically, demand zones like this have triggered strong rebounds when buyers stepped in. If SEI can hold this support level and reclaim its 100-day Moving Average (100D MA), it could signal the beginning of a bullish reversal.
A breakout above the $0.24 resistance with significant volume could attract renewed buying interest and push the price higher, potentially mimicking SUI’s previous surge. However, a failure to hold this demand zone could result in further declines, especially if market conditions remain bearish.
The next resistance levels are at $0.17, $0.19, and $0.21 for the token. Reaching the latter corresponds to a rebound of around 30%.
With the introduction of the Sei Development Foundation, market sentiment could turn positive, potentially helping it regain momentum. Traders should closely monitor price movements and exchange volumes in the coming days to confirm a possible reversal.
Although the cryptocurrency market has seen a tough start to the year, with a significant drop in SEI price, the latest developments, especially the establishment of the Sei Development Foundation in the United States, offer promising prospects for a potential rebound.
Here is a practical guide to purchase SEI on the Weex exchange:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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