SEI Price rallies 10% on Increasing Network Activity – Key Levels to Watch

The SEI price is up 10% over the last 24 hours to trade at $0.7366 as of 2:30 a.m. ET. The price of the layer 1 token has risen 21% over the last week and over 380% over the last 90 days.

A Feb. 11 post on X by cryptocurrency advocate Aaron Sage revealed "SEI is progressively increasing its activity and user count day after day."

According to the tweet, SEI recorded 21,700 new users, and 174,200 active users in the week heading to the Chinese New Year. The total number of users on SEI reached 950,300 as of February 11.

The sector-specific Layer 1 blockchain has attracted a large volume of users as the anticipation surrounding its V2 testnet increases.

The project announced in an official blog post that the V2 testnet will be released in early 2024 and a mainnet release will follow in the first half of 2024.

As users increase, the total value locked (TVL) on the blockchain has also increased. According to data from DeFi data provider DefiLlama, SEI's TVL has been increasing over the last week to hit an all-time high of $13.98 million on Feb. 13.

SEI network TVL. Source: DefiLlama

SEI's price grew in tandem with the on-chain activity and TVL. As the users interacted with the blockchain, demand for SEI grew resulting in price growth. What are the key levels to watch for SEI price over the next few days?

SE price could exploit a rounded bottom pattern

After turning away from highs of around $o.8730 in mid-January, the SEI price embarked on a downtrend that was stopped by the 50-day exponential moving average at $0.5866 after losing more than 30% of its value.

Buyer congestion from the $0.58 support level began pushing SEI upwards in a steady recovery that has seen the token recoup 25% of the losses to the current levels.

The SEI price action between Jan. 17 and Feb. 13 has led to the appearance of a rounded bottom chart pattern on the daily chart (see below). There was an attempt to drop below the pattern on Feb. 11 but this turned out to be a bear trap as the price turned up sharply a few days later.

At the time of writing, SEI was battling resistance from the psychological level at $0.75. A daily candlestick close above this level would push the price toward the pattern's neckline at $0.8345. Bulls were required to flip this level into support to confirm a bullish breakout.

Such a move would set the price on a clear path toward the $1.0830. This would bring the total gains to 47%.

SEI/USD daily chart. Source: TradingView

The moving averages were keeping the bullish narrative alive by maintaining an upward trajectory.

In addition, the relative strength index (RSI) was moving upward. The price strength at 59 suggested that the buyers were still dominating the market.

Conversely, SEI may turn down from the current price to revisit the $0.681 major support. A drop lower would see the price drop toward the pattern's bottom around the $0.612 area, embraced by the 50-day EMA. Such a move would undo all the recent gains and invalidate the bullish narrative.