$25 Million Outflow Puts SEI Price in Jeopardy: What’s Next?
SEI’s price has been struggling to maintain its gains and has experienced a significant decline. On-chain data reveals a drop in Open Interest, suggesting the possibility of further selling pressure. Currently, SEI is down nearly 3.74% and is trading close to $0.27. The decreased Open Interest can be attributed to bearish pressure on SEI, as derivatives traders are liquidating their long positions. Santiment data shows that $25 million worth of contracts have been liquidated out of a total of $71 million, indicating waning trader and investor interest. The weighted sentiment curve has also shifted to a bearish territory, further dampening positive sentiment.
Analysts warn of a potential drop to annual lows, as SEI has been on a 7-day losing streak. The price has fallen below the 20 and 50-day EMAs, and is trailing behind the 200-day EMA by 33%, indicating a long-term bearish trend. Intraday trading volume has decreased by 52% to $51.87 million. If the bears maintain their hold, SEI is likely to reach support levels at $0.25 and $0.22.
The RSI line currently stands at 41.4 points, while the 14-day SMA line is at 50.82 points. A bearish crossover has been observed between the RSI and SMA line, suggesting continued selling in the short term. Overall, SEI’s decline, coupled with the drop in Open Interest and weighted sentiment, highlights the challenges the cryptocurrency is facing.