SEI loses key support as 17% drop tests weak network

$SEI dropped more than 17% in the past 24 hours at press time. While this decline matched the broader crypto market's 5% slide, $SEI's weak network activity and capital outflows turned a market-wide dip into something uglier for holders. Some tokens weather the storm; $SEI apparently decided to swim against it.

$SEI activity takes a nosedive. Per SeiScan, the network has looked sleepy since the start of June. Daily transaction fees dropped 38%, falling from 3,849 $SEI to 2,360 as of writing. Average daily transaction fees weren't spared either, sliding 39% to roughly $0.0002. Low network usage tends to show up in fee revenue, and these numbers make that correlation painfully obvious.

DefiLlama data also pointed to a slump in $SEI's DEX volume since June began. At the start of the month, the token sat around $15 million; as of writing, that's down to $11.44 million, a 24% drop. Fewer swaps, fewer reasons to feel optimistic.

Meanwhile, capital has been quietly exiting $SEI's Futures market since the mid-May peak at $0.08. Over the past 24 hours alone, more than $13 million was sold, accelerating the price slide. With Futures traders essentially running a leveraged casino, that kind of unwind tends to make any drop steeper than it should be.

Worth noting: $SEI's stablecoin market cap shed about a percent during this period. Beyond capital leaving, liquidity is getting squeezed, and squeezed liquidity has a funny way of scaring participants off.

On the charts, the weakness was visible. $SEI lost a major slanting trendline support that had held price for more than two months. Since April, $SEI had been printing higher highs, except toward the end of May. It failed to beat its May high of $0.08 even after dipping to this slanting support as it had been doing. In fact, it formed a double top around $0.07, a classic sign of buyers losing conviction. The MACD confirmed the shift, with red bars growing larger. If bears keep pushing, further decline looks likely.

The RSI Divergence indicator, however, flashed a buy signal after entering oversold territory, hinting at a potential reversal at $0.04845, the level where the altcoin originally kicked off its rally to $0.08. A reversal isn't a sure thing, though. It would take capital inflows, a revival in network usage, and a friendlier broader market to get there.

$SEI price declined by about 17% in 24 hours amid weak network activity and capital outflows in the Futures market. $SEI price may reverse at $0.04845 only if bulls can hold and the overall market sentiment shifts.