SEI Stalls at Lows, but On-Chain Activity Tells a Different Story

Despite SEI (Sei Network) experiencing price stagnation, the on-chain activity indicates a growing underlying strength. While trading remains confined within a low range, key metrics show increased user engagement and transaction volume, signaling a potential buildup for future volatility.

Key Takeaways

SEI's price remains low, hovering around $0.1216.
On-chain metrics like DEX volume have surged to over $400M, reflecting active user engagement.
Perpetual contract (perp) volumes have skyrocketed by 19,527% in 90 days, indicating aggressive trader positioning.
A breakout above the $0.20 level could lead to significant upside potential.

SEI stalls at lows, but on-chain activity tells a different story

Main Content

Growth in market fundamentals often drives long-term price movements, and SEI is currently displaying clear signs of this dynamic brewing beneath the surface. On the 4-hour chart, SEI continues to trade in the lower end of its larger price range, restricted beneath the exponential moving average (EMA) ribbon. This positioning maintains elevated risk, with the possibility of a downturn toward the weak low at around $0.1216 if support fails.

SEI Chart Source: TradingView

The compression of SEI's price at these lower levels suggests hesitation rather than a complete disengagement, keeping the token within a narrow consolidation period, while user participation grows in other market areas.

DEX Activity Rises Amid Price Stagnation

Despite the muted price movements, SEI's on-chain presence has seen a significant uptick. DEX volume rose beyond $400 million in just a fortnight, showcasing a notable increase in user activity and transaction engagement even at range lows.

DEX Data Source: DefiLlama

This growth in on-chain engagement during a period of price stagnation is crucial. It often signals a buildup of positions in anticipation of volatility, rather than a sign of distribution, especially when positioned near long-term range support.

Perpetual Contracts Surge

In the derivatives markets, a similar trend has been observed. SEI's perpetual contract volume has exploded by 19,527% over the last three months, indicating strong positioning by traders while the spot price remains constrained below the EMA ribbon.

Perpetual Contracts Source: X

This increase in perpetual contracts suggests that traders are focusing more on future market exposure rather than reacting to the current price weakness. Historically, significant expansions in perp volume during compression phases often lead to a resolution in price direction, rather than a prolonged stagnation.

Is SEI Poised for a Breakout?

Structurally, SEI is positioned between well-defined risk levels and potential upside. A decline below $0.1216 could expose lower support levels, but a successful reclaim of the EMA ribbon could significantly shift market momentum. A breakout from the current range would bring the supply zones around $0.18 to $0.20 back into consideration.

Price Structure Source: X

The current chart of SEI resembles the base pattern of Binance Coin (BNB) prior to its expansion in 2024. Breaking above the $0.20 area is crucial, as a decisive clearance could pave the way for a broader upward movement, possibly extending toward the $1.5 region if momentum continues.

Final Thoughts

As SEI experiences price stagnation, the increasing on-chain activity and derivatives volume suggest that it may be preparing for a significant break in either direction. Monitoring these developments will be essential for understanding the future trajectory of SEI in the cryptocurrency market.