Is Sei Going to Crash? SEI Price Drops 20% as a New Mining Protocol Shakes Up the Market

cryptonews.com:

Sei Network has experienced a worrying -20% drop in SEI price. But can SEI price analysis predict a potential crash ahead of Sei Network V2?

This retracement follows market-wide optimism regarding the upcoming Sei Network V2 upgrade. The upgrade aims to introduce a fully parallelized EVM.

$SEI Range: My gut feeling tells me that this isn't for continuation, given how overextended the structure is.

I'm not ruling out a PO3 wick above -a fakeout kind of deal- but eventually, I believe the price will be below the bottom range. pic.twitter.com/6c8AUcxDr1

— the dude (@cryptodude999) January 17, 2024

Yet, with market sentiment shifting on crypto twitter, it seems that the aggressive +70% rally amid the V2 hype has led to over-extended technical structure, triggering the downturn in price.

Amid cascading price action, Sei Network is currently trading at a market price of $0.57 (Representing a 24-hour change of -3.6%).

This comes as the sixth day of consecutive downside for SEI price, in what has become a worrying tumble in value for the over-extended technical structure.

Critically, on January 19, SEI price lost the steadfast support of the ascendant 20DMA (now stood at $0.71) – which has left price in free-fall.

To highlight the importance of the 20DMA price level, this key moving average provided a backbone of support for SEI’s climb since November in response to market hype around Sei Network v2.

Now heading south, SEI price may find relief at a lower support level around $0.55 – a level with historic precedent providing multiple footholds in early January.

Yet, the emergence of double-barrelled rejection from upper trendline resistance at $0.88 highlights the potency of this downside movement.

In a bullish sign, which reinforces the