-7.48% for Sei — volatility spikes despite bullish short-term indicators

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Sei drops 7.48% as volatility rises

Highlights

Sei Network daily activity and transaction volumes surged, temporarily ranking it among the most active EVM-compatible layer-1 chains.
The network is undergoing an infrastructure upgrade aimed at reaching a throughput of 200,000 transactions per second.
Total value locked on Sei dropped sharply from $682 million to $95 million, driven mainly by ongoing token unlocks during its adoption phase.

Network throughput ambitions as token unlocks weigh on TVL

Sei Network has experienced a sharp increase in daily activity and transaction volumes, temporarily placing it among the most active EVM-compatible layer-1 chains. The network is undergoing an infrastructure upgrade targeting a throughput of 200,000 transactions per second. Despite these advances, total value locked on Sei has dropped from $682 million to $95 million primarily due to ongoing token unlocks as the platform pursues ongoing adoption and development.

Volatility and buyer control as overbought signals test SEI’s range

Momentum indicators are mixed: the MACD is neutral, the ADX shows only modest trend strength, the RSI is in bullish territory at 60.8, and both the Stochastic RSI and Commodity Channel Index point to overbought conditions. Bull/Bear Power remains positive, indicating buyers are in control intraday, and the Awesome Oscillator supports the short-term upward direction. However, SEI has declined 7.48% on the day, trading near the lower end of the range, which signals elevated volatility and possible exhaustion in bullish momentum unless buyers quickly reassert themselves. The nearest dynamic support is the Ichimoku Kijun level ($0.1207), while resistance is situated near the MA-50 or the $0.1300 area, a key psychological threshold.

Downside risk prevails as weekly indicators signal narrow consolidation

In the coming five trading days, SEI is likely to fluctuate between $0.1200 and $0.1320, a volatility band relative to current levels. Downside risks remain dominant given a majority of 'Sell' signals across the weekly timeframe from major indicators including Moving Averages, RSI, and MACD, suggesting less than a 20% chance of a decisive upward breakout. The base expectation is for consolidation within a narrow range, with recovery attempts likely to stall near $0.1300 – $0.1320. A sustained bullish move requires a clear break above resistance, while a slide below $0.1200 would indicate further potential losses.

Viktoras Karapetjanc, expert at Traders Union, notes that Sei shows constructive signs in the short term despite recent price weakness. He sees daily network activity and ambitious technical upgrades as fundamental strengths, though the drop in total value locked raises caution. Most indicators suggest the current rally faces strong resistance near $0.1300, but medium-term optimism holds if fundamental growth persists. Karapetjanc adds: "With ongoing development and clear buying interest, I believe Sei has real potential for a rebound if $0.1200 support holds over the week."

Last time, analysts noted that Sei is trading above its short- and medium-term moving averages, indicating bullish momentum, but remains well below its long-term average, reflecting ongoing seller control in the broader trend. Momentum and oscillator signals present mixed but mostly cautious outlooks, suggesting potential for a short-term pullback or consolidation unless a clear breakout above near-term resistance occurs.

Source of Data: SEI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.