SEI faces pressure to sell – is a return of $0.06 possible?

SEI’s SEI price is struggling for support. The $0.049 mark has been broken. Trading data on derivatives shows that traders have become more cautious. Selling pressure continues to be strong. The Open Interest has decreased 7% at $29,000,000, indicating capital leaving the market instead of flowing in.

This wouldn’t make a huge difference on its own. The situation with bullish traders, however, is more important.

Bulls being forced to leave

SEI has been struggling to gain momentum. Long liquidations amounted $553.2k only in the last 24 hour, a significant amount when compared with the number of sellers who were forced to leave the market.

Many traders had positions in place for a recovery, but recent weakness forced them to close some of these positions. Liquidations increase, creating additional pressure to sell, and making the price more difficult to stabilize.

This trend is becoming increasingly hard to ignore in the past few sessions.

The participation rate is declining. Participation is fading at the same time. The steady drop in OI indicates that fewer traders will continue to expose themselves to SEI levels at the current level. 

Many investors are waiting to see if the signals have improved before they return to the market. This hesitation gives sellers the opportunity to remain in control.

What’s next for SEI

The bears are currently in control. As of the date this article was written, token prices were aggressively trading under the main Exponential Moving Averages support.

A combination of falling OI with rising long-term liquidations is rarely bullish. SEI may be vulnerable to further declines in the near term unless demand begins to return and liquidation stress starts to ease.

Traders aren’t focusing on the next rally. Watching to see if the market finally finds a reason for selling is what they’re doing. A retracement of around $0.06 to the balance zone is not possible if the cards are turned and the bulls gather enough momentum.

Final Summary

• SEI Open Interest fell to its lowest level in a week following recent crypto turmoil.
• The pressure on traders to abandon their bullish positions is increasing as long-term liquidations increase.