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During periods of extreme fear and broader crypto weakness, even the strongest projects feel the pressure. Over the past week, Sei (SEI) has been under pressure as sellers maintained control and market sentiment remained fragile.
After losing the key support at $0.1206, the price fell into a vulnerable zone. Spot market activity revealed that whales were siding with sellers, confirming that the downward pressure was not simply the result of retail panic.
Liquidity conditions deteriorated rapidly after the support failed. Loss of $0.1206 exposed SEI to a deeper bearish pocket near $0.0689, where historic demand had previously emerged.
Without a rapid recovery, confidence weakened and further selling became a real risk. Market participants have shifted their focus from continuing the rally to controlling the damage and preserving liquidity.
Why do traders increase their exposure as prices fall?
Despite the occasional weakness, activity on derivative products increased significantly. SEI derivatives volume reached $32 million in 24 hours, at the time of writing.highlighting the growing speculative interest.
Open Interest (OI) rose alongside volume, showing traders were adding exposure rather than exiting positions. This behavior suggested active positioning and not capitulation.
Source: CoinGlass
Increased volume associated with increasing OI during price weakness often signals a leveraged conviction. Traders appeared willing to take directional bets, expecting volatility to increase.
However, this has also increased the risk of liquidation, especially when prices trade below former support. Any sharp moves could trigger forced unwinds, amplifying volatility in either direction.
Whale orders remain active!
The average spot order size showed sustained whale participation as the SEI trended lower, signaling active positioning rather than retail selling.
Source: CryptoQuant
Large orders continued to appear during the price weakness. This suggests that distribution and absorption occurred simultaneously, with the largest players shaping market direction even as confidence deteriorated.
Can SEI regain control before cash takes over?
Momentum indicators reflect continued weakness, although the first signals of stabilization have started to emerge. At press time, the RSI remained suppressed, signaling limited bullish strength but slowing selling pressure.
The MACD remained negative, but histogram compression indicated a slowing of bearish momentum, with the blue line curling upward toward a bullish reversal.
Such conditions often precede short-term reactions, although they do not guarantee a reversal.
Source: TradingView
For the structure to improve, SEI must recover the $0.1261 range decisively. A sharp move above this area would prevent former support from turning into resistance.
Failure to recover leaves fear dominant and keeps the focus on $0.0689. Conversely, a return above $0.20 would significantly change the structure and relieve downward pressure.
Final Thoughts
- The distribution of SEI alongside increasing derivatives and OI volume reflects a market driven by leverage, not conviction.
- Smart investors often pile on strong projects in times of fear, viewing $0.1261 as the boundary between a recovery and a deeper decline.
