SEI is a Layer-1 blockchain that has been developed as a very high-performance trading platform, where transactions settle very quickly, have very low latency, and settle easily. It has been developed to be a specific, purpose-built blockchain network within the larger universe of alternative currencies.
The Crypto market overall has been recovering cautiously as we enter January. After experiencing extreme price corrections in the Crypto markets, the volatility has dropped dramatically. At press time, the coin is trading at $0.1177 with a decrease of 2.95% o er the past 24 hours.
SEI Holds support at $0.11–$0.12
The chart from TradingView is showing continued price consolidation just above the 0.11-0.12 level despite a long downward trend. In addition, we see that after establishing lower lows for an extended period, we no longer see lower lows. The RSI shows that the price has stabilized in the neutral zone at or about the 50 level and that this indicates a transition from bearish control to neutral.
If we get a confirmed close above 0.13, then we would expect to see some kind of a recovery towards the 0.145-0.16 resistance level. Conversely, if we break below 0.109, then the current price structure will become invalid.
Also Read: Sei Blockchain Hits $9B in Tokenized Treasuries as SEI Eyes $3 Breakout
$21M Outflows Absorbed
According to the data from CoinGlass, the spot net flow for SEI is about -21.42M for the last 30 days and -6.04M for the last week. The volume of sell orders over the last 24 hours is comparatively lower than the amount of the coin being traded on the market.
In essence, even with the continued selling pressure, the price remains stable, which indicates that demand is absorbing the selling pressure at or around the demand zone. Based on these indicators, the coin is entering into an accumulation stage.
Stablecoin Supply Near $100M
As per the recent update by SEI’s official account on X, as an emerging network, data indicates a growing trend of users employing stablecoins on the SEI network, as well as an increase in the use of P2P payment methods in the last few months.
An increase in transaction activity indicates an increase in the actual usage of SEI in the real world. The increased use of the coin in real-world payment methods and stablecoins has the potential to be an underlying support during price consolidation.
In conclusion, SEI took a very conservative bullish position in January. Although we need further affirmation, price stabilization, reduced selling pressure, and increased network activity point towards the coin moving out of this correction phase and into the recovery stage.
Also Read: Sei Active Users Sees 100% Growth With the Price Eyeing a Target Above $0.15
