The Layer-1 blockchain Sei ($SEI ) has recently dropped to a critical support level following Bitcoin's broader market decline. Over the past week, the cryptocurrency market witnessed significant corrections, with many altcoins retracing by 15-30%. Among these, was SEI one of the hardest hit.
Despite a remarkable recovery of nearly 30% after its sharp drop on December 20, Sei struggled to maintain momentum, declining by 12% since December 21. Market analysis from AMBCrypto highlights that $SEI is presenting mixed signals, leading to uncertainty about its immediate trajectory.
Current Market Dynamics
According to AMBCrypto, Seiâs long-short ratios are leaning toward a bullish trend. The token recently tested the support of an ascending channel, which often signals a potential upward move. However, selling pressure from the resistance level within this channel has contributed to the recent pullback, pushing $SEI to a key support level of $0.43.
Despite these challenges, liquidity activity on exchanges has drawn attention. If $0.43 holds as a strong support, technical models suggest that Sei could resume an uptrend, potentially targeting $0.65 in the coming sessions.
Sentiment from Traders and Key Indicators
Data from Coinglass reveals that top Binance traders maintain a bullish outlook for $SEI. The long-short ratio currently sits at 3.65, reflecting a significant bias toward long positions, indicating optimism about Sei's potential price increase. Additionally, recent liquidation data points to a trend of bearish positions being liquidated, further supporting the possibility of an upward move.
Outlook and Key Takeaways
While Sei faces conflicting signals in the short term, the support level of $0.43 will play a critical role in determining its next move. If this level is preserved, the chances of a rebound toward $0.65 increase significantly. However, continued selling pressure could lead to further declines.
Traders should closely monitor market conditions and $SEI's price action around its key support and resistance levels. The current sentiment and technical indicators suggest a cautious but optimistic outlook for Seiâs price recovery.
