Sei Token Hits Key Support Amid Decreasing Transactions and Wallet Activity

Sei's crypto price dropped to a critical support of $0.2645, signaling bearish trends.

Active wallets and transactions on the Sei network fell sharply by 20% and 87%, respectively.

A descending triangle pattern on the price chart indicates potential for further declines in Sei's price.

Sei’s cryptocurrency price has recently tumbled to a crucial support level of $0.2645, marking its lowest value since August and September. This significant drop has raised concerns among investors as the token shows signs of continued bearish pressure. The network has also faced a dramatic decrease in transaction volume and active wallet addresses in recent weeks, further dampening sentiment.

Data from Nansen reveals that the number of transactions on the Sei network has plummeted by 87% over the past 30 days, reaching just 57 million. This sharp decline positions Sei as one of the worst-performing blockchain networks for the month. Additionally, active wallet addresses have fallen by 24%, now totaling only 13 million. The reduced activity has also translated into a decrease in transaction fees, dropping by approximately 12% to a mere $16,000.

Deteriorating Performance in the Gaming Sector

Sei, a network known for its dominance in the gaming sector, is also facing challenges in this space. According to DappRadar, unique active wallets in the gaming market have declined by 20% over the last 30 days, falling to 13.45 million. The network’s total value locked (TVL) has also decreased by 17% in the same period. This deterioration in performance raises questions about the future viability of Sei’s market position, especially in the competitive blockchain gaming arena.

Source: TradingView

On the technical front, Sei’s price chart indicates the formation of a descending triangle pattern, a well-known bearish continuation signal. The token’s price has dropped below the 50-day exponential moving average, further supporting the notion of continued downward pressure. The Relative Strength Index (RSI) has been trending lower and is nearing the oversold level of 70, while the Moving Average Convergence Divergence (MACD) has dipped below the neutral zone, suggesting a further bearish trend.

Outlook for Sei Price

Given the current market conditions, Sei’s price is likely to experience a significant breakdown. Analysts are eyeing the $0.1325 level as a potential target, which represents a 50% decline from the current price. However, a recovery above the $0.3500 resistance level could invalidate this bearish outlook and signal a potential reversal for the token.

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