Date: Sat, May 17, 2025 | 11:40 AM GMT
The cryptocurrency market has mounted a solid comeback in recent weeks, with Ethereum (ETH) continuing to lead the charge. ETH has surged more than 55% in the past month and is now trading below $2,500 after making a high of $2,700 — a level not seen since early January. This bullish momentum is uplifting sentiment across altcoins, including Sei (SEI).
SEI has posted impressive monthly gains of over 33%, though it currently trades slightly lower on the day — down around 7%. But this pullback is drawing attention, as the token is now retesting a key breakout level, raising the possibility of a strong bounce back.
Retesting Inverse Head and Shoulders Breakout
The daily chart for SEI clearly shows a well-formed inverse head and shoulders pattern — a classic bullish reversal signal. This pattern usually signals the end of a downtrend and the beginning of a potential uptrend.
SEI confirmed the breakout earlier this month when it rallied from the right shoulder at around $0.19, breaking above the neckline resistance near $0.2290. That breakout pushed the price to a local high of $0.2749.
But after facing resistance near that high, SEI dropped over 15%, bringing the price back toward the $0.22 zone. This zone, which previously acted as strong resistance, is now being retested as support — a crucial step in validating the breakout.
Is SEI Ready for a Rebound?
This current retest of the neckline support is critical.
- If $0.22 holds as support, and buyers step in, SEI could resume its uptrend.
- A confirmed bounce would likely take the price back to the previous high of $0.2749.
- If momentum continues, the measured move from the inverse head and shoulders pattern could push SEI up to around $0.38 — a potential 68% gain from current levels.
However, if SEI fails to hold the neckline and closes below $0.22, the bullish setup could be invalidated, and the price might revisit the 100-day moving average, currently sitting lower on the chart, before finding new support.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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