sei Token Faces Challenges Despite Ecosystem Growth
Sei (SEI),a rapidly expanding layer-1 network,is experiencing a price decline. It’s now close to its all-time low, despite growing ecosystem activity. In the past four weeks, SEI has seen a continuous drop, reaching its lowest point since November 2023. The token is down by 78% from its peak.
Despite the price fall, the Sei network’s total value locked (TVL) has risen by 70% in the last 30 days, reaching $406 million. This makes it the 17th-largest chain in the crypto industry by TVL, according to defi Llama.
Most dApps on Sei have also seen asset growth. Yei Finance, similar to AAVE, has seen its assets increase by 72% in the last 30 days, reaching $215 million. Sailor, a decentralized exchange (DEX), holds $60.65 million in assets. Avalon Labs has seen a 50% jump.
- Decentralized exchanges on sei handled $110 million in volume in the last seven days.
- This is a 62% increase from the previous week.
- The top DEX networks are Sailor, Dragon Swap, and Uniswap.
These metrics explain why Sei has the most bullish sentiment on CoinMarketCap, standing at 88.5%. However, on the 8-hour chart, SEI is in a steep downtrend, trading below its 50-period moving average. But it has formed a falling wedge pattern, a bullish reversal structure. It also appears to be forming an inverse head and shoulders pattern, another bullish setup.
With strong fundamentals and technical support, SEI could be poised for a rebound. If a breakout occurs, the initial target will be $0.2920.A drop below the year-to-date low would invalidate this bullish outlook.
