The cryptocurrency market is witnessing renewed bullish momentum, with Bitcoin (
$BTC ) surging by 2.56% to reclaim the $105K mark. This upward movement has sparked a rally among major altcoins, including Sei (
$SEI ) and Pyth Network (
$PYTH ), which are exhibiting notable gains.
Both tokens are approaching key resistance levels after breaking out of falling wedge patternsātraditionally considered bullish formationsāsuggesting the potential for further upside.
Sei (SEI) Analysis
Currently trading at $0.32, SEI is nearing a critical juncture within its falling wedge pattern. The token recently found support around $0.2970, aligning with the lower boundary of the wedge, reinforcing its potential for a bullish reversal.
Key Technical Levels:
Resistance: The immediate resistance level is the 25-day Simple Moving Average (SMA). A successful breakout and retest could propel SEI toward the next resistance targets at $0.43 and $0.48, representing a potential 47% gain from its current price.
Momentum Indicators: The MACD (Moving Average Convergence Divergence) indicator is showing early signs of bullish momentum, further strengthening the case for a breakout.
Pyth Network (PYTH) Analysis
Similarly, PYTH is approaching the upper boundary of its falling wedge pattern, currently trading at $0.28. The token has recently established support around $0.26, coinciding with the wedgeās lower boundary.
Key Technical Levels:
Resistance: A breakout beyond the 25-day SMA could pave the way for a move toward $0.37 and $0.40, offering a potential 41% upside.
Momentum Indicators: The MACD indicator is beginning to turn positive, indicating a possible shift in momentum.
Market Outlook
With both SEI and PYTH nearing key resistance levels, traders should closely monitor these zones for potential breakouts. Bitcoinās continued strength could act as a catalyst for further gains in the altcoin market.
However, failure to break resistance could lead to short-term pullbacks before another attempt at higher levels. As always, traders should exercise caution and consider market conditions before making investment decisions.
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