MKR and SEI Approach Key Resistance: Are Breakouts On The Horizon?

Date: Fri, Jan 24, 2025, 10:33 AM GMT

The cryptocurrency market has shown notable bullish momentum in the past 24 hours as Bitcoin (BTC) surged 3.94% and is now trading above $105K. This surge is fueled by a major development: President Donald Trump has signed an executive order to create a national digital asset stockpile, signaling strong support for the crypto industry and reinforcing America’s leadership in the blockchain space.

This has also sparked spike in altcoins, with Maker (MKR) and Sei (SEI) emerging as tokens to watch. Both have posted gains of over 7% and 6%, respectively, as they approach key resistance levels that could define their next major moves.

Source: Coinmarketcap

Maker (MKR)

Maker (MKR) is currently trading at $1,317, nearing a critical resistance level at the top of a falling wedge pattern. The token has already bounced off the wedge’s lower boundary, which provided strong support at $1,228.

MKR 1D Chart/Coinsprobe (Source: Tradingview)

The falling wedge, a classic bullish reversal pattern, suggests a breakout may be imminent. A confirmed breakout above the wedge could propel MKR to intermediate resistance levels at $1,474 and $1,676, marked in the red zone on the chart. If this scenario materializes, MKR could see potential gains of up to 27% from its current price.

The MACD is nearing a bullish crossover, signaling growing bullish momentum. This aligns with the potential for a breakout.

However, failure to break above the wedge could lead to a retest of support at $1,228, which could delay any upward momentum.

Sei (SEI)

Sei (SEI), trading at $0.3580, is also nearing a crucial resistance level at the top of its own falling wedge pattern. Like MKR, SEI recently bounced from the wedge’s lower boundary at $0.33, which has acted as strong support.

A confirmed breakout above the resistance could trigger a significant rally for SEI, targeting intermediate resistance levels at $0.4350 and $0.48, marked in red on the chart. If successful, this move could result in gains of up to 35% from its current price.

SEI’s MACD is inching closer to a bullish crossover, further strengthening the case for a breakout.

If the price fails to break out, SEI may revisit support at $0.33, delaying its upward momentum.

Conclusion

Both Maker (MKR) and Sei (SEI) are displaying similar setups, with falling wedge patterns approaching key resistance levels. These patterns suggest the potential for bullish breakouts if the resistance levels are breached.

A successful breakout for either token could lead to substantial gains, with MKR targeting levels up to $1,676 and SEI aiming for $0.48. However, traders should closely monitor the resistance zones and look for confirmation signals, such as increased volume and bullish MACD crossovers, before entering positions.

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