Sei Token Drops 77% From Peak Despite Strong Network Growth

Sei's price has been on a downward trajectory, with the token dropping to $0.1660 on June 17, marking its lowest level since April 17. This decline represents a more than 40% drop from its May high and a 77% plunge from its November 2023 peak. Despite this bearish price action, Sei's underlying fundamentals remain robust. The network's total value locked (TVL) has reached an all-time high of over 3.08 billion
, a significant increase from 715 million at the start of the year. This growth in TVL indicates strong adoption and usage of the network's decentralized applications.Most decentralized applications on the Sei network have seen growing adoption. Yei Finance, a lending platform modeled after Aave, has accumulated over $295 million in assets, while Takara Lend has secured $51 million. Additionally, Sei’s stablecoin supply has continued to rise this year, with over $200 million in stablecoins, up from $1.2 million in March. The majority of these stablecoins are USDC, which holds an 83% market dominance within the ecosystem.
The decentralized exchange (DEX) volume on the Sei network has remained steady over the past few months. Protocols built on Sei handled over $640 million in May, up from $612 million in April and $407 million in March. Key DEX platforms on Sei include Sailor, Dragon Swap, Uniswap, and Jelly. This steady volume suggests continued user engagement and liquidity within the network.
Furthermore, the number of users joining the Sei network has been increasing. The daily active addresses have risen to 263.6k from 61,000 in March, and the number of transacting users has also jumped in recent months. This growth in user activity is a positive sign for the network's long-term prospects.
Technical analysis of Sei's price chart shows that the token has been trending sharply lower since its May 11 peak of $0.2747. The decline has accelerated alongside broader crypto market weakness. The price has now fallen below all major moving averages, while the MACD and Relative Strength Index are both pointing downward, indicating bearish momentum. However, SEI is currently approaching a potential double-bottom formation around the $0.1295 level, its lowest swing from April 8. If this support holds and the pattern completes, a rebound could target the neckline resistance at $0.2800. This technical analysis suggests that while the short-term outlook is bearish, there is potential for a rebound in the near future.
According to the analyst's forecast, Sei's price may crash by 22% and then rebound. This forecast is based on the current technical analysis and the potential double-bottom formation that SEI is approaching. If the support at $0.1295 holds, the rebound could target the neckline resistance at $0.2800. This would represent a significant recovery from the current lows and could indicate a shift in market sentiment towards Sei.

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