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The price of Sei continued its sharp downtrend on June 17 as the broader cryptocurrency market experienced intensified selling pressure. The Sei token (SEI) dropped to $0.1660, marking its lowest level since April 17. This represents a decline of over 40% from its May high and a staggering drop of more than 77% from its November 2023 peak.

Sei Network’s Fundamentals Remain Strong

Despite the bearish price movement, Sei’s underlying fundamentals remain robust. According to recent data, the network’s Total Value Locked (TVL) has surged to an all-time high of over 3.08 billion SEI, compared to just 715 million at the beginning of the year. This growth highlights the increasing adoption of decentralized applications (dApps) within the Sei ecosystem.

Most dApps on the Sei network continue to gain traction. For instance, Yei Finance, a lending platform inspired by Aave, has accumulated over $295 million in assets, while Takara Lend has secured $51 million. These platforms are playing a pivotal role in the ecosystem’s expansion.

Rising Stablecoin Supply in the Sei Ecosystem

The Sei network has also seen a significant increase in its stablecoin supply this year. Stablecoins within the ecosystem now total over $200 million, up from $1.2 million in March. Notably, USDC dominates the stablecoin market in Sei, holding an 83% market share.

Steady Growth in Decentralized Exchange Volume

Another positive indicator for Sei is its consistent decentralized exchange (DEX) activity. Protocols built on Sei processed over $640 million in trading volume in May, up from $612 million in April and $407 million in March. Key DEX platforms contributing to this growth include Sailor, Dragon Swap, Uniswap, and Jelly.

Increasing User Activity on Sei

User adoption on the Sei network has been growing steadily. Daily active addresses have risen significantly, reaching 263,600 from 61,000 in March. Additionally, the number of transacting users has also seen a noticeable uptick, reflecting increasing engagement within the ecosystem.

Sei Price Technical Analysis

From a technical perspective, the daily chart highlights a persistent downtrend for SEI since its May 11 peak of $0.2747. This decline has been exacerbated by broader weakness across the cryptocurrency market.

The price has fallen below all key moving averages, while momentum indicators such as the MACD and Relative Strength Index (RSI) suggest continued bearish pressure. SEI is now approaching a key support level around $0.1295, which marks its lowest point from April 8.

“If this support level holds, the formation of a potential double-bottom pattern could offer a chance for a rebound. In that scenario, the price might target resistance near $0.2800.”

However, traders should remain cautious, as the broader market sentiment will likely play a crucial role in determining Sei’s short-term direction.

Key Takeaways

  • Sei price has dropped significantly, reflecting broader market trends.
  • The network’s TVL has reached new highs, signaling strong ecosystem growth.
  • Stablecoin supply, DEX volume, and user activity on Sei continue to rise.
  • Technical indicators show bearish momentum, but a potential reversal could occur if key support levels hold.

As the cryptocurrency market remains volatile, investors should stay informed and evaluate the fundamentals of projects like Sei to make informed decisions.

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