Sei Labs made a major breakthrough in the world of blockchain technology on Thursday, January 22, which solves the long-standing trade-off of low latency and censorship resistance.
Using a combination of two critical technologies, Minimal Censorship Protocol and sharding, Sei Labs was able to create a solution that provides extremely fast transactions without compromising decentralization and security, which was thought to be impossible in the world of blockchain.
This is a tremendous achievement and holds great significance to various industries where speed and security are paramount, such as DeFi, gaming, and supply chain applications.
With Sei Labs’ integration of MCP and sharding, a new standard is set to ensure scalability and censorship resistance, allowing developers to reach a new era of decentralized applications where speed and security do not have to be compromised.
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However, the potential advancement made by Sei Labs’ technology has also affected its native token, SEI. The crypto analyst Lennaert Snyder, on Sunday, January 25 stated that the price of the token is currently hovering around its critical support at $0.105.
The price levels have been monitored by traders in anticipation of a price reversal in the asset’s value. The potential price reversal may lead the price of the asset towards its potential resistance at around $0.112 or may lead to a bearish price reversal in its value.
Source: Lennaert Snyder X Post
If the price breaks the support level at $0.105, it might be an indication of the continuation of the falling trend. On the other hand, the price bouncing at the level might provide an opportunity to invest in the token. Market sentiments need to be kept in mind in the coming days, as the price is volatile at the level.
According to the TradingView data, on January 25, it is still trading within a bearish setup, and its MACD is still trading well below the zero level.
The MACD line is trading below the signal line, which is a strong indicator of a potential fall in the token value. In addition, tightening price bars indicate a decrease in volatility; therefore, it is moving towards a consolidation process.
Source: TradingView
The RSI is currently at 36.85 and is moving towards the oversold zone, which indicates a potential reversal if there is a pickup in buying pressure on it.
As the price consolidates around key levels, a potential trend reversal and price upswing can occur if there is a bullish crossover or a move above the 50-level RSI, which could signal a trend reversal and potential price rally.
Also Read: SEI Enters Accumulation Zone Despite Break Below 21-Day Moving Average
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