Sei’s price has been in a strong downward trend over the past few months, but technical and fundamental indicators suggest that a rebound may be possible.
Sei (SEI), a layer-1 token, dropped to a low of $0.1722 this week, down over 70% from its highest level in December.
According to DeFi Llama, Sei’s decentralized finance or DeFi ecosystem is firing on all cylinders.
The total value locked in the network jumped to a record high of $340 million — a significant increase considering it bottomed at $170 million in February. This is also a major achievement since most layer-1 and layer-2 networks have shed assets during the ongoing crypto crash.
Most players in the Sei ecosystem have added assets this month. Yei Finance, a top lending protocol in the network, has accumulated nearly $200 million in assets, up 90% from the same period last month.
Sailor, a DEX network, holds $53 million in assets, while Stargate, Dragon Swap, and Avalon Labs have also added assets.
Sei’s price may also get a boost from rising demand for the token. Donald Trump’s World Liberty Financial recently acquired SEI tokens worth over $100,000 — a sign that the team sees value in the token.
Sei price technical analysis
The daily chart shows that SEI’s price has been in a strong downtrend over the past few months. It dropped from a high of $0.7343 in November to a low of $0.20 this month. The token remains below the 50-day and 25-day Exponential Moving Averages.
The token has formed a double-bottom pattern at $0.2038, with a neckline at $0.7343. A double-bottom is one of the most popular bullish reversal patterns in the market.
SEI has also formed a bullish divergence pattern. The MACD indicator has continued rising even as the price has fallen. Similarly, the Relative Strength Index has formed a series of higher highs and higher lows.
Therefore, the token will likely bounce back in the next few days, with the next point to watch being at $0.7343, its highest swing in December. This target is about 265% above the current level. A drop below the support at $0.180 will invalidate the bullish view.
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