- Sei rallied 35% in 3 days of being shortlisted on Wyoming as one of the pilot programs of state-backed stablecoins.
- The token is coming out of a long-term wedge pattern where strong technical indicators backed the rally.
- Analysts see more upside as trading liquidity doubles and investor sentiment strengthens.
Sei (SEI) has seen a sudden uptick in prices this week as it was chosen as one of the finalists in the Wyoming Stable Token (WYST) pilot program. On June 20, SEI stood at $0.2136, 35% higher than its recent low of $0.1596 three days prior. The trend move was a breakout out of a long-term descending wedge, a possible indication of a trend change.
In 2023, the Wyoming Stable Token Commission chose Sei and Aptos to enter the final testing stage. Sei scored 30, slightly lower than Aptos, which got 32, and higher than other competitors, including Avalanche, Sui, and the XRP Ledger of Ripple. These criteria comprised uptime, user base, core infrastructure, and security.
WYST is a blockchain-backed stablecoin that will be released through LayerZero technology to allow cross-chain interoperability. This includes a USD one-to-one redemption feature of the state, which makes it one of the first U.S. state-issued stablecoins.
This regulatory-backed initiative involving the protocol has seen the interest of investors rise. SEI has increased 15% in 24 hours, according to market data, to about $1.18 billion in market cap.
Technical Indicators Confirm Bullish Momentum
The daily chart of SEI/USDT indicates a bullish breakout in a six-month descending broadening wedge, which supports the sentiment change. The token traded at a low of $0.1596 on June 17 and a high of 0.2144 on June 20.
Technical indicators are lined up bullishly. There is renewed buying pressure with RSI moving up to 55.66. The MACD line has broken the signal line to the upside, a bullish crossover, thereby indicating further bullish impetus.
Bollinger Bands also verify the increased volatility, where SEI is approaching the upper band at the $0.2107 level, casting significant short-term demand. The move above the 20-day moving average ($0.1887) shows a bullish price action.
Analysts have taken note. A popular trader called FOUR indicated the structure of the charts, implying SEI might be gearing up for a longer movement to the price at the level of 0.80, assuming the momentum sustains.
Stablecoin Legislation and Ecosystem Growth Fuel Optimism
The market reaction is also consistent with the larger trends in U.S. regulations of crypto. The Senate has passed the GENIUS bill, a proposal introducing a federal framework on stablecoins, yet the legislation is awaiting consideration in the House. Its implementation would establish guiding principles about the state-issued stable assets such as WYST.
The announcement of SEI is made when there is heightened speculation on the ecosystem’s growth. Although there have been no new announcements since that time, crypto analysts have speculated that future partnerships or protocol upgrades may emerge. Viktor, a crypto market observer, noted the timing of the breakout and the social media buzz, hinting that institutional players may be entering early in anticipation of further updates.
from Crypto News: Bitcoin, Ethereum & Price Data | BlockchainReporter https://ift.tt/zH9Zr5f
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