The Sei token has been on a downward trajectory, approaching its all-time low, despite signs of growth within its ecosystem.
Sei (SEI), an emerging layer-1 network, continues to decline, nearing its historical low even as activity within its ecosystem picks up speed. The price of SEI has fallen for four consecutive weeks and is currently at its lowest point since November 2023, having dropped 78% from its peak during the current cycle.
This ongoing decline in the price of SEI is occurring alongside notable ecosystem growth. As reported, the total value locked in the Sei network has surged by 70% over the last month, reaching $406 million, making it the 17th largest blockchain in the crypto sector by total value locked.
A majority of the decentralized applications (dApps) in the Sei ecosystem have seen an increase in assets recently. Yei Finance, a competitor to AAVE, has experienced a 72% rise in its assets over the past month, now totaling $215 million. The Sailor decentralized exchange (DEX) has assets valued at $60.65 million, while Avalon Labs has reported a 50% increase.
Additional data indicates that Sei’s applications are attracting more users, even as cryptocurrency prices decline. The decentralized exchanges on the network transacted volumes totaling approximately $110 million in the last week, reflecting a 62% increase from the prior week. Leading DEXs within the network include Sailor, Dragon Swap, and Uniswap.
These statistics likely contribute to the strong positive sentiment surrounding Sei on CoinMarketCap, where the sentiment currently sits at 88.5%, a level maintained over the last few days. Other tokens showing bullish sentiment include Sonic, Polkadot, Bittensor, and Bonk.
Technical Analysis of Sei’s Price
On the 8-hour chart, SEI is showing a pronounced downtrend, trading beneath its 50-period moving average, which confirms bearish momentum.
Nevertheless, SEI has developed a falling wedge pattern, indicating a potential bullish reversal indicated by two descending, converging trendlines. Additionally, it seems to be forming an inverse head and shoulders pattern, another formation that typically signals a breakout to the upside.
Given this mix of technical indicators and strong fundamentals, SEI might be on the verge of a recovery. Should a breakout happen, the initial target would be $0.2920, which reflects the high from February 24. A drop below the year-to-date low would negate this optimistic outlook.