As the cryptocurrency market continues to show signs of recovery, prominent trader Michaël van de Poppe has highlighted the strong performance of SEI and other altcoins. In a recent post, he noted that many altcoins have broken above their 21-day moving average and are now testing this level as support, which is holding up well. This technical development suggests potential for a new upward leg in the markets, making SEI one of the positions he's particularly optimistic about holding.

Technical Breakdown: Altcoins Breaking Key Moving Averages

The 21-day moving average serves as a crucial indicator for short-term trends in cryptocurrency trading. According to Michaël van de Poppe's analysis on January 12, 2026, altcoins like SEI have successfully breached this level, a move that often signals bullish momentum. Traders watch these breaks closely because they can indicate a shift from bearish to bullish sentiment. Once above the 21-day MA, the next critical phase is testing it as support. If prices bounce off this level without breaking below, it reinforces the upward trend. In the current market environment, this pattern is evident across multiple altcoins, contributing to a broader sense of optimism. For instance, if we consider historical precedents, similar breaks in 2024 led to sustained rallies in assets like ETH and SOL, where trading volumes surged by over 30% within days. While exact real-time prices aren't available here, this setup points to potential entry points for traders looking to capitalize on dips towards the 21-day MA support. Key resistance levels to watch would be the recent highs, potentially around previous all-time highs for SEI, encouraging strategies like buying on pullbacks with stop-losses just below the MA.

SEI's Standout Performance and Trading Opportunities

Focusing specifically on SEI, the token has been a standout performer amid this altcoin resurgence. SEI, known for its high-speed blockchain designed for trading applications, benefits from increased market liquidity and adoption in decentralized finance sectors. Michaël van de Poppe's endorsement underscores its resilience, as it's not only breaking technical barriers but also showing robust on-chain metrics. For traders, this means monitoring trading pairs like SEI/USDT or SEI/BTC for volume spikes. In a scenario where the broader market pushes higher, SEI could target resistance at levels seen in late 2025, potentially yielding 20-30% gains from current support tests. Institutional flows into altcoins, as reported by various market analysts, further bolster this case, with increased whale activity noted in SEI's ecosystem. However, risks remain, such as sudden Bitcoin corrections that could drag altcoins down, emphasizing the need for diversified portfolios and risk management tools like trailing stops.

Beyond SEI, the altcoin market's collective strength ties into larger cryptocurrency dynamics. Bitcoin's dominance often influences altcoin rallies, and with BTC stabilizing above key supports, altcoins are poised for rotation. Market sentiment indicators, such as the Fear and Greed Index, are shifting towards greed, which historically correlates with upward legs. Traders should look at on-chain data, including transaction volumes and active addresses, to gauge sustainability. For example, if altcoin trading volumes exceed 50 billion USD daily, as seen in previous bull phases, it could confirm the new leg upwards predicted by van de Poppe. This environment creates cross-market opportunities, where stock market correlations—such as tech stock rallies influencing AI-related tokens—could amplify crypto gains. Even without real-time data, the narrative suggests preparing for volatility, with long positions in altcoins like SEI offering high-reward setups if supports hold.

Broader Market Implications and Strategic Insights

Looking ahead, the potential for a new market leg upwards hinges on macroeconomic factors, including interest rate decisions and regulatory clarity in the crypto space. Van de Poppe's view aligns with sentiments from other traders who see this 21-day MA break as a precursor to altseason. For those trading SEI, integrating tools like RSI and MACD can provide confluence; an RSI above 50 during support tests would strengthen bullish cases. In terms of SEO-optimized trading strategies, focus on long-tail keywords like 'SEI price prediction 2026' or 'altcoin breakout strategies,' which highlight opportunities for gains. Institutional adoption, evidenced by fund inflows into crypto ETFs, could drive further momentum. Ultimately, while the market holds nicely as per the analysis, traders must stay vigilant for reversals, using historical data from 2021-2023 bull runs to inform decisions. This setup not only benefits spot traders but also derivatives players eyeing futures with leverage, provided they manage downside risks effectively.

In summary, the current altcoin landscape, led by performers like SEI, presents compelling trading prospects amid technical validations. By prioritizing support levels and monitoring market correlations, investors can navigate this phase with informed strategies, potentially capitalizing on the anticipated upward movement.