The SEI token is navigating a precarious technical landscape, with its price action under intense scrutiny as it tests key support levels. Over the past week, SEI lost the crucial $0.1206 support zone, sliding into a vulnerable price range that now exposes it to a deeper downside target near $0.0689, a level where historical demand has previously emerged. The breakdown was accompanied by significant spot market activity, with data indicating that whales were active on the sell side, confirming the downward pressure was not merely retail-driven panic.
Despite the spot market weakness, derivatives activity has surged aggressively. Within a 24-hour period, SEI derivatives volume reached $32 million, with Open Interest (OI) climbing alongside it. This pattern suggests traders are adding leveraged exposure rather than exiting positions, indicating active directional betting in anticipation of heightened volatility, though this also raises liquidation risks.
Technically, analysts highlight the 20-day moving average as a critical battleground for recovery. A decisive break above this level could pave the way for a move toward the $0.16 target zone. Currently, SEI trades around $0.11, below all major moving averages, signaling a short-term bearish trend. Momentum indicators like the RSI, while suppressed, show signs of slowing sell pressure, with the MACD histogram compressing, hinting at fading downside momentum.
Fundamentally, the SEI Network continues to develop, highlighted by a ground-breaking partnership with tech giant Xiaomi announced in early December. Starting in 2026, millions of new Xiaomi smartphones in markets outside China and the US will ship with a pre-installed Sei wallet and Web3 discovery app, utilizing an MPC wallet that removes seed phrases. This integration is poised to dramatically increase user access to crypto. The network also recently underwent a token unlock on December 15, releasing 55.56 million SEI (1.08% of total supply) worth approximately $6.93 million.
