World Liberty Financial (WLFI) has sparked a brief rally in the SEI token price after purchasing $775,000 worth of the cryptocurrency, driving its value up by 20% before encountering resistance at a key level.

WLFI’s Investment in SEI Tokens

Blockchain analytics firm Arkham Intelligence revealed that WLFI acquired 4.89 million SEI tokens on April 12, funded through USD Coin (USDC) transferred from the project’s main wallet to a trading wallet. This significant purchase added SEI to WLFI’s expanding portfolio of altcoins, which already includes prominent cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Avalanche (AVAX), Chainlink (LINK), and Wrapped Bitcoin (WBTC).

WLFI’s diversified investments span 11 tokens, with a cumulative expenditure of $346.8 million, showcasing its active participation in the cryptocurrency market.

Impact on SEI Price

Following WLFI’s acquisition, SEI experienced a 20% surge, climbing from $0.15 at the day’s open to $0.18 by close—the highest price recorded since March 29. Despite this temporary rally, SEI’s daily chart highlights a persistent downtrend that began in December last year. The token has consistently formed lower highs and lower lows, with each recovery attempt losing strength.

During this bearish phase, SEI struggled to sustain movements above its 20-day Exponential Moving Average (EMA). While the WLFI purchase briefly pushed SEI above the EMA, its ability to maintain this position remains uncertain.

Key Support and Resistance Levels

As of now, SEI is trading near a horizontal support level at $0.17, priced at $0.1773. This zone has seen repeated buyer activity, temporarily halting further declines. However, if SEI fails to hold this support, the next critical level to monitor is $0.15.

On the upside, breaking above $0.18 could signal a shift in momentum, but sustained buying pressure would be necessary to overcome the extended downtrend and establish stronger bullish signals.

Tips for Beginners Observing SEI Price Movements

If you’re new to cryptocurrency investing, here are a few tips to keep in mind:

  • Monitor key levels: Pay attention to support and resistance zones, as these are areas where price movements often change direction.
  • Use technical indicators: Tools like the 20-day EMA can help identify trends and potential reversal points.
  • Diversify your portfolio: Avoid putting all your funds into a single token to minimize risk.
  • Stay updated: Follow market news and updates to understand factors influencing price changes.

While SEI’s recent rally has drawn attention, its long-term price action suggests caution. Investors should evaluate broader market conditions and trends before making decisions.

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