The price of the SEI token has pumped over 15% today, trading around $0.74 at press time. This rally brings SEI close to retesting its all-time high around $0.85, a level that has rejected price advances twice in January so far (see chart below).
As the chart shows, SEI price recently bounced off strong support formed around $0.55 where it rebounded several times back this month. This establishes $0.55 as an important support zone going forward.
Source: TradingView
At the same time, RSI across all timeframes is hovering around 70. For those unfamiliar, the Relative Strength Index (RSI) is a momentum indicator that measures the speed and rate of price movements. An RSI above 70 signals overbought conditions, implying the rally may be overextended and due for a pullback.
What’s Behind the SEI Price Rally?
What catalysts are driving this upside price action in SEI? As a quick background, SEI is the native token of the Sei Network, a trading-focused blockchain launched in August 2023 and backed by prominent crypto investors.
The Sei chain is tailored to support speed, low fees, and other features that enable trading systems. It has seen huge growth in adoption recently thanks to rising interest in EVM-compatible networks capable of parallel computing.
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Show more +Some of the likely factors propelling SEI price higher include:
- Expanding ecosystem of dApps choosing to build on Sei Network due to superior speeds and low costs
- Progressive decentralization as prominent institutions and validators secure the network
- Planned upgrades that will make Sei the fastest blockchain on the market
Of course, with SEI appearing overbought per the RSI readings, a minor pullback or consolidation around current levels is quite possible. However, the medium and long term growth prospects look bright.
Traders eyeing the all-time high ($0.85) as the next target to watch if bullish momentum resumes. Strong support resides around $0.55 in case of a deeper retracement.
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