AVAX and SEI Shed Half Their Value This Year – Could This Pattern Bring a Recovery?

Date: Wed, April 09, 2025 | 06:36 AM GMT

The cryptocurrency market continues to struggle under bearish pressure, with Ethereum (ETH) recording its worst Q1 drop since 2018, falling by a staggering 56% this year. This broader downturn has hit altcoins hard—Avalanche (AVAX) and Sei (SEI) among the worst performers, each losing more than half of their value since the beginning of 2025.

Source: Coinmarketcap

However, both tokens are now testing crucial lows. And surprisingly, this similar decline has shaped a technical setup that could spark a much-needed recovery.

Classic Cup and Handle Formation in Play

On the daily charts, both AVAX and SEI are showing almost mirror-like structures, forming a well-recognized Cup and Handle pattern. The “cup” part began taking shape back in March 2024, following a long and gradual base-building phase. The sharp sell-offs that began in late 2024 marked the start of the “handle” section, with AVAX dropping nearly 73% and SEI plunging over 82% from their recent highs.

Now, both tokens have found temporary support near their lows, and this area is crucial. Holding this support zone and building a bounce from here could confirm the completion of the handle phase.

If a recovery starts, the immediate challenge will be reclaiming the 50-day moving average. Regaining this level would signal early bullish momentum returning. Beyond that, both AVAX and SEI will face the next key test at the green zone resistance, which represents a price region where sellers have historically stepped in.

This green zone—clearly marked on the charts—sits just below the neckline of the Cup and Handle pattern. A successful move through this resistance range would be a powerful confirmation that bulls are gaining control again.

But the ultimate test remains the 200-day moving average. A breakout above this level and a push toward the neckline resistance (highlighted by the orange descending trendline) would open the door for a potential breakout. If that happens, both tokens could finally enter a sustained uptrend after months of losses.

Final Thoughts

AVAX and SEI are down—but maybe not out. The daily charts show both tokens forming a textbook Cup and Handle pattern, which has historically led to significant reversals when confirmed. Holding current support, reclaiming the 50-day MA, and pushing through the green zone resistance are the key milestones ahead. If bulls manage to clear these hurdles and retest the neckline, a full-fledged breakout could follow.

Of course, failure to hold these levels would invalidate the pattern and extend the bearish trend. For now, the next few weeks will be crucial in determining whether this is the bottom—or just another pause before the fall.

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