Sei's Active Users Surge 140% as Price Stalls at $0.30 Resistance

Sei's network has experienced significant growth over the past six months, with active addresses surging from 250,000 to 600,000 and daily transactions exceeding 1.6 million. This rapid expansion indicates a rise in user engagement and consistent utility gains, potentially reflecting increased developer traction or successful dApp deployments on the network.

Despite this strong on-chain momentum, SEI's price has faced resistance at $0.30, with derivatives sentiment remaining bearish despite recent recoveries. As of the latest data, SEI traded at $0.279, down 1.15% for the day, as bulls struggled to maintain recent gains. The price has stalled near the $0.29–$0.30 resistance band, which has acted as a key supply zone since February, rejecting multiple bullish attempts. Although the price recently pierced this range, it has yet to close convincingly above it. A confirmed breakout could pave the way toward $0.337, while a rejection may force another test of $0.254. Therefore, bulls must sustain pressure at current levels to maintain momentum.

Social dominance for SEI spiked sharply, reaching as high as 0.59% before cooling to around 0.25%. This rise in social mentions reflects heightened trader attention and increasing speculative interest. Historically, such spikes often align with strong market moves. However, if not supported by new buyers or development milestones, this surge could quickly fade.

Even as SEI recovers, funding rates remained negative, around -0.02% across top exchanges. This signaled a bearish tilt, with more traders betting on the downside. Interestingly, this skew opens the door for a short squeeze if bulls hold key levels. So, while caution dominates the derivatives space, the setup for a surprise upside move remains intact.

The Open Interest-Weighted Funding Rate sat at -0.0129% as of the 2nd of July, highlighting that leveraged traders still lean bearish. Even with the price bouncing off support and network metrics improving, the lack of bullish conviction in the derivatives market suggests disbelief in the current rally. However, this kind of sentiment mismatch often leads to sharp moves when traders are caught offside. Hence, SEI could surprise to the upside if spot demand continues to build.

Sei’s massive surge in active users and transactions shows that network fundamentals are improving rapidly. Yet, the price remains stuck below a critical resistance zone as traders hesitate. If Sei manages to flip this resistance into support while sentiment stays skeptical, it could trigger a powerful rally fueled by a short squeeze and retail momentum. Until then, all eyes remain on the $0.29–$0.30 level for confirmation.