SEI price action is struggling to find support with the $0.049 level broken. Selling pressure remains strong and derivatives data shows traders are becoming cautious. At press time, Open Interest (OI) fell 7% to $29 million, indicating that capital is leaving the market rather than flowing into it.
It wouldn’t be a big deal in itself. However, the situation involving bullish traders is the biggest problem.
The bulls are hunted
Long liquidations increased as SEI struggled to regain momentum. In the last 24 hours alone, the network’s long liquidation amounted to $553.2k, which is significant compared to the volume of sellers being pushed out of the market.
Many traders were positioned for a rebound, but recent weakness has forced some of these positions to close. As the number of liquidations increases, additional selling pressure is created, making it more difficult for the price to stabilize.
Over the past few sessions, this trend has become increasingly difficult to ignore.
At the same time, participation is declining. THE the steady decline in OI suggests that fewer traders are willing to remain exposed to SEI at current levels.
Instead of buying the dip, many seem to be waiting for clearer signals before returning to the market. This hesitation gives sellers the opportunity to maintain control.
What’s next for SEI?
Currently, the bears have the upper hand. At the time of writing, token price action was trading aggressively below major exponential moving average (EMA) supports.
Additionally, falling OI and rising long liquidations rarely form a bullish combination. Unless demand returns and liquidation pressure begins to ease, SEI could remain vulnerable to further declines in the near term.
For now, traders are not focusing on the next rally. They are watching to see if the market can finally find a reason to stop selling. In the event that the cards turn around and the bulls accumulate enough momentum, a retracement to fill the imbalance zone at around $0.06 cannot be undone.
Final Summary
- SEI Open Interest fell to its lowest weekly level following the recent crypto shakedown.
- Increasing long liquidations add pressure as traders exit their bullish positions.
