Sei Price Tanks, but On-Chain Metrics Flash Bullish Divergence

Sei Price Crashes 40% – Sei (SEI) continues to face strong selling pressure as the broader cryptocurrency market experiences heightened volatility and declining prices. On June 17, SEI dropped to $0.1660, marking its lowest level since April 17 and representing a more than 40% decline from its May peak. The token has fallen sharply from its all-time high in November 2023, plunging over 77% since then.

Price Analysis: Accelerating Downtrend and Technical Indicators

Following its peak of $0.2747 on May 11, SEI’s price has trended decisively downward, accelerating alongside the general crypto market weakness. Key technical indicators confirm bearish momentum:

Price slipped below all major moving averages, signaling a potential sustained downtrend.
The MACD (Moving Average Convergence Divergence) indicator points downward.
The Relative Strength Index (RSI) also reflects bearish sentiment.

Currently, SEI is approaching a critical support zone near $0.1295, which corresponds to the token’s lowest swing point from April 8. This level could form the base of a potential double-bottom pattern. If this support holds and the pattern completes, it might pave the way for a rebound targeting the neckline resistance around $0.2800.

Strong Fundamentals Underpin Sei Despite Price Decline

Despite the bearish price action, Sei’s core fundamentals tell a more optimistic story. According to DeFi Llama data, the network’s total value locked (TVL) has surged to an all-time high of over 3.08 billion SEI, a remarkable increase from just 715 million SEI at the start of 2025. This growth signals rising confidence and expanding utility within the Sei ecosystem.

Growing Adoption Across Decentralized Applications on Sei

The Sei blockchain’s ecosystem has seen significant user and activity growth, especially among decentralized finance (DeFi) platforms:

Yei Finance, a lending platform inspired by Aave, currently manages over $295 million in assets.
Takara Lend, another lending service, has accumulated approximately $51 million in assets.

Moreover, Sei’s stablecoin supply has shown a strong upward trajectory. From a modest $1.2 million in March, stablecoin issuance has soared to over $200 million, predominantly comprising USDC, which holds 83% market dominance in the Sei stablecoin market.

Decentralized Exchange Volume Remains Resilient

Sei’s decentralized exchanges (DEXs) have maintained steady trading volumes in recent months, reflecting sustained user engagement:

The total DEX volume processed by protocols built on Sei reached over $640 million in May, up from $612 million in April and $407 million in March.
Leading DEX platforms include Sailor, Dragon Swap, Uniswap, and Jelly.

User Growth Accelerates on Sei Network

User activity metrics further underline Sei’s growing ecosystem:

The number of daily active addresses has increased significantly from 61,000 in March to 263,600 in June.
Transaction counts and on-chain engagement have also surged in recent months, highlighting expanding adoption despite current price pressures.

Conclusion: Sei Faces Short-Term Price Headwinds but Long-Term Potential Remains

While Sei’s token price is currently entrenched in a downtrend exacerbated by the wider crypto market slump, its fundamental indicators remain robust. Growth in total value locked, lending platform assets, stablecoin supply, and user activity all point toward a healthy, expanding network.

Traders and investors should watch closely as SEI approaches the $0.1295 support level, where a potential double-bottom pattern could signal a technical reversal. However, caution remains warranted as bearish momentum dominates the charts in the short term.

Sei token has experienced a significant price decline, dropping over 40% since its May peak as the broader cryptocurrency market continues to face downward pressure. Despite this bearish trend, the Sei network’s fundamentals remain strong, with total value locked (TVL) reaching an all-time high of more than 3.08 billion SEI—up sharply from 715 million at the start of the year. Adoption of decentralized applications on the network is growing steadily, highlighted by platforms like Yei Finance and Takara Lend securing substantial assets.

Additionally, Sei’s stablecoin supply has surged past $200 million, predominantly driven by USDC, which holds an 83% market share. While the token’s price is approaching a potential double-bottom support around $0.1295, technical indicators such as the MACD and RSI suggest continued bearish momentum, leaving the near-term outlook uncertain despite strong underlying ecosystem growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.