SEI Hits Demand Zone After SUI-Based Fractal Fails – Will It Bounce Back?

Date: Thu, April 03, 2025 | 06:30 AM GMT

The cryptocurrency market has had a rough start to the year, with Ethereum (ETH) experiencing its worst quarterly drop since 2018, plunging 45%. This broad market downturn has significantly impacted major altcoins, including the Layer-1 token Sei (SEI), which has seen a sharp decline of over 60% in the past three months.

However, as SEI tests a major demand zone and with its latest developments, a potential rebound could be on the horizon.

Source: Coinmarketcap

SEI Introduces U.S.-Based Development Foundation

On April 2, SEI announced the launch of the Sei Development Foundation, a U.S.-based non-profit focused on accelerating the growth and awareness of the Sei protocol. This initiative aims to provide strong financial and technical support to developers building on Sei, fostering innovation and adoption.

Source: blog.sei.io

By establishing this foundation in the U.S., SEI is positioning itself as a key player in the evolving regulatory and technological landscape, potentially boosting investor confidence and long-term ecosystem growth.

SEI Hits Demand Zone After SUI-Based Fractal Fails

Initially, SEI mirrored SUI’s price action, showing a similar breakout pattern. However, SEI faced rejection at the $0.73 price level on December 4 (highlighted in the red circle), leading to a steep decline.

Unlike SUI, which gained 222% after breaking through a key resistance level, SEI 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.

Will SEI Bounce Back?

SEI is now at a decisive moment. Historically, demand zones like this have triggered strong rebounds if buyers step 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 strong volume could attract renewed buying interest and push the price higher, potentially mimicking SUI’s earlier price surge. However, failure to hold this demand zone could lead to further downside, especially if market conditions remain bearish.

With the introduction of the Sei Development Foundation, market sentiment could shift positively, potentially helping SEI regain momentum. Traders should closely monitor price movements and trading volume in the coming days to confirm a potential reversal.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before investing in cryptocurrencies.