Here’s Why SEI Crypto Price Could Hit $0.45 Soon

Sei Network (SEI), which is commonly referred to as the “red chain,” broke off the lower support of its ascending trend channel. This followed its strong fundamentals, which were bolstered by the crypto markets, adding approximately $29 billion in capital the previous day.

In recent times, specifically this week, the crypto markets have exhibited mixed sentiments, suggesting a potential bounce. The markets have been reacting differently from how they did in the past in the last quarter (Q4) of the year.

Analysts expect a rebound that could reach $0.45, but what makes this a possibility?

SEI Crypto Price Eyes $0.45 Target

SEI crypto price was holding steady above the $0.19 support zone in a solid rising channel. The zone with a high demand area resulted in moves that reached $0.30 and $0.38, respectively. This signal implied that SEI had a good chance of a bullish rebirth in case purchasing force intensified.

An outburst above $0.26 would confirm the movement towards $0.31, the midpoint of the rising channel. More momentum could push the price even higher to $0.45, which was the uppermost channel resistance.

Conversely, failing to maintain support above $0.19 may leave SEI price vulnerable to retreating toward $0.14. This zone coincided with the bottom of the channel.

The midpoint levels of the upper and lower channels indicated short-term price targets in case of a smooth recovery. To confirm a bullish trend, the SEI crypto price needs to trade above $0.28.

However, the price action did not eliminate the downside risk despite the heightened probability of an upside. On-chain activity backed the upside potential.

SEI Crypto Net Inflows and Perps Volume

SEI crypto price was backed by strong fundamentals. The net inflows for SEI jumped by more than double since last month, indicating capital was being induced into the altcoin. The previous month had about 250 million SEI in inflows, while the current month is seeing slightly over 600 million SEI.

Apart from the surging inflow of capital, the perps volume traded was also on the rise. The Perps volume spiked from zero to $28 million in October. This indicated that SEI crypto was getting more exposure in the DeFi ecosystems.

Additionally, major institutions were moving into the chain for their RWA and DeFi activities, as per a post by Merlijn The Trader. BlackRock, Apollo, Circle, PayPal, Brevan Howard, and Ondo Finance (ONDO) are using SEI as a coordination layer for global finance.

Top L1 Blockchains by Active Addresses

When analyzing Layer 1 (L1) blockchains by the number of active addresses, SEI ranked among the top. According to data from Token Terminal, SEI was ranked sixth with more than 175 million active addresses since the start of the year.

This metric further backed the rising chain usage of SEI, attributed to lower fees and faster transactions. It correlates to SEI crypto price directly; hence, a rise results in an increased price more often than not.

The altcoin was behind Plasma (XPL), Polygon (POL), Ethereum (ETH), Bitcoin (BTC), and Aptos (APT), which followed each other. Plasma led this race despite launching last month. That’s because Plasma’s main focus was the stablecoin market, which commanded the biggest volume in crypto markets.

In conclusion, SEI crypto price was trading above a critical support level that could see it jump to $0.45 or higher.