Sei Coin Drops 22% After 80% Rally on Wyoming Pilot Program

SEI, the native coin of the Sei blockchain, has experienced a significant correction after reaching a high of $0.33 within seven days. The rally was driven by the Wyoming Stable Token Commission shortlisting Aptos and Sei for its stablecoin pilot program, which could potentially make Sei the blockchain to house the first stablecoin minted and issued by a state in the U.S. Despite the broader crypto market undergoing a bearish run due to the conflict in the Middle East, SEI managed to add roughly 80% to its value. However, it failed to surpass the major high around $0.35 and is currently undergoing a correction.

At the time of reporting, SEI's price stands at $0.2621, down from its weekly high of $0.3388. The Relative Strength Index (RSI) has dropped from a high of 86 (overbought) to 51 (neutral), indicating that buyers are losing control of the market. Additionally, the blue and red Moving Average Convergence Divergence (MACD) lines have swapped places and are now heading into negative territory, suggesting possible selling pressure. If the bearish momentum persists, SEI could break below the $0.20 level and test the transactional liquidity (TLQ) zone at $0.1909. In the event of an extended bearish run, SEI could drop to $0.17, thereby losing the gains it accumulated over the last seven days.

However, the broader market remains bullish, which could help SEI push higher. If the bulls regain control, SEI could rally toward the $0.3500 high in the near term. This depends on the broader crypto market’s performance. SEI is at a crucial juncture as it remains to be seen if it will resume its rally or extend its correction toward new lows. The recent 80% rally in SEI's value has led to traders booking profits, as indicated by a 48% drop in trading volume over the last 24 hours. This declining volume could contribute to SEI’s price dropping further.