The price of Sei has experienced a significant decline in recent months, although both technical and fundamental indicators suggest a potential recovery may be on the horizon.
This week, Sei (SEI), a layer-1 cryptocurrency, hit a low of $0.1722, representing a decline of over 70% from its peak in December.
According to recent data, Sei’s decentralized finance (DeFi) ecosystem is performing exceptionally well.
The total value locked within the network surged to a record high of $340 million, a notable rise from its low of $170 million in February. This marks an impressive accomplishment, especially as most layer-1 and layer-2 networks have seen asset reductions amid the ongoing downturn in the cryptocurrency market.
Many participants within the Sei ecosystem have increased their holdings this month. Yei Finance, a leading lending protocol on the platform, has amassed nearly $200 million in assets, reflecting a 90% increase compared to the same timeframe last month.
Sailor, a decentralized exchange (DEX) network, holds $53 million in assets, with additional increases noted from Stargate, Dragon Swap, and Avalon Labs.
Moreover, Sei’s price could benefit from an uptick in demand for the token. Recently, Donald Trump’s World Liberty Financial purchased SEI tokens valued at over $100,000, indicating that they recognize the token’s potential value.
Technical Analysis of Sei’s Price
The daily chart indicates that SEI’s price has followed a pronounced downward trend over the past few months, sliding from a high of $0.7343 in November to a low of $0.20 this month. The token continues to trade below both the 50-day and 25-day Exponential Moving Averages.
A double-bottom pattern has emerged at $0.2038, with a neckline at $0.7343, which is regarded as a popular bullish reversal setup in the market.
Additionally, SEI has manifested a bullish divergence pattern. The MACD indicator has been on the rise even as the price has declined. Concurrently, the Relative Strength Index is showing a sequence of higher highs and higher lows.
Consequently, the token is likely to experience a bounce in the coming days, with the next target level to monitor being $0.7343, its peak from December. This target is approximately 265% higher than the present level. However, a drop below the support level at $0.180 would negate this optimistic outlook.