SEI Token Faces Bearish Pressure as Support Zone Tested

According to data from CoinMarketCap, SEI’s market capitalization has slid 4.7% to $1.71 billion, highlighting the erosion of investor confidence amid the current downturn. The divergence between rising trading volume and falling prices suggests continued market participation, but predominantly on the sell side. The weekly performance shows SEI closing with a sharp red candle, reflecting strong selling pressure as the token declined from $0.31234 to $0.28055. This price action aligns with wider market sentiment that has turned cautious toward cryptocurrency assets.

The 24-hour trading volume increase of 6.7% to $124.72 million indicates that traders remain actively engaged with SEI despite the negative price movement. However, this elevated volume during a decline typically signals distribution rather than accumulation, suggesting that sellers are using any price stability to exit positions. The combination of falling market capitalization and rising volume creates a concerning picture for SEI bulls, as it demonstrates that the selling pressure is substantial enough to overwhelm any buying interest at current levels.

SEI recently broke out of a symmetrical triangle pattern after months of compression, a development that initially suggested a potential reversal from consolidation to expansion. The pattern, which featured price compression with lower highs and higher lows, culminated in a large bullish weekly candle that confirmed the upside breakout. However, this positive structure now faces significant threats as the price hovers around $0.2809, just above the critical breakout zone between $0.27 and $0.28.

As noted by crypto analyst @MuroCrypto, this support range has become vital for maintaining bullish momentum. A successful hold above this zone would suggest that the breakout remains valid, potentially setting the stage for a recovery toward resistance levels in the $0.50–$0.55 region. Conversely, a breakdown below $0.27 could push SEI back into its earlier consolidation structure, with the next significant demand zone appearing in the $0.23–$0.24 area. The token’s ability to defend this support will likely determine its trajectory for the coming weeks.

Technical indicators from TradingView reveal a deteriorating momentum picture for SEI. The Relative Strength Index has declined to 48.87, dropping below its moving average of 53.52. This movement signals waning momentum and potential travel into bearish territory. While the RSI is not yet in oversold conditions, falling below the critical 50 level indicates that sellers are gaining dominance over buyers, a concerning development for short-term price prospects.

The MACD indicator presents a mixed but ultimately concerning outlook. Although the MACD line remains marginally positive at 0.00820 above the signal line at 0.00395, the histogram is squeezing to 0.00425, indicating declining strength. This pattern suggests that a bearish crossover may be imminent, which would confirm additional downside pressure. The convergence of these technical signals points to fragile conditions for SEI, with the token’s outlook heavily dependent on its ability to maintain the $0.27–$0.28 support zone.

SEI finds itself at a technical crossroads, with the symmetrical triangle breakout structure hanging in the balance. The cryptocurrency’s ability to defend the $0.27–$0.28 zone will be decisive for its near-term direction. A successful defense could validate the recent breakout and potentially pave the way for a test of resistance in the $0.50–$0.55 range, which would need to be overcome for a sustained rally toward $0.70–$0.75.

However, the prevailing technical evidence suggests caution is warranted. The combination of bearish weekly performance, weakening momentum indicators, and the test of critical support creates a high-risk environment for SEI traders. Market participants should monitor trading volume closely alongside price action at the support zone, as a breakdown accompanied by elevated volume would likely signal deeper declines toward the $0.23–$0.24 demand area. Until SEI can demonstrate sustained buying interest above $0.27, the path of least resistance appears to be downward.