SEI under selling pressure as long liquidations pile up

$SEI's price action is struggling to find support, with the $0.049 level broken. Selling pressure remains strong, and derivatives data show traders turning cautious. At press time, Open Interest (OI) has fallen 7% to $29 million, signaling capital is leaving the market rather than flowing in. That wouldn't be a big deal on its own. However, the situation involving bullish traders is the more significant issue. Source: Santiment

Bulls are being forced out. Long liquidations have been picking up as $SEI struggled to regain momentum. In the last 24 hours only, the network's long liquidation amounted to $553.2k, which is significant compared to the volume of sellers forced out of the market. Many traders were positioned for a rebound, but the recent weakness has forced some of those 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 last few sessions, this trend has become increasingly difficult to ignore. Source: Coinalyze

At the same time, participation is fading. The steady decline in OI suggests fewer traders are willing to stay exposed to $SEI at current levels. Instead of buying the dip, many appear to be waiting for clearer signals before returning to the market. That hesitation is giving sellers room to stay in control, as bulls sit on the sidelines refreshing charts and hoping for a miracle.

What comes next for $SEI? Currently, the bears have the upper hand. At the time of writing, the token's price action was aggressively trading below the key Exponential Moving Averages (EMA) supports. Moreover, 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 downside in the short term. For now, traders aren't focused on the next rally. They're watching to see whether the market can finally find a reason to stop selling. In case the cards turn and bulls accumulate enough momentum, a retracement to fill the imbalance zone at around $0.06 cannot be overruled. Source: TradingView

Final Summary: $SEI Open Interest dropped to its lowest weekly level following the recent crypto shakedown. Rising long liquidations are adding pressure as traders abandon bullish positions, leaving the token to fend for itself in a market that's currently short on mercy.