• SEI’s price has dropped 74% since March, with ongoing declines in Open Interest and development activity.
• The token faced critical resistance at $0.30, and breaking this level could trigger a potential rebound.

The Sei [SEI] token, once riding high at a peak price of $1.14 in March, has seen a significant downturn in recent months. As of the time of writing, SEI is trading at $0.2648, marking a 74% drop from its March high. 

This decline represented a continuation of a broader downward trend that has persisted over the past week, during which the token has lost nearly 10% of its value.

The past 24 hours alone have seen a 3.3% decrease in SEI’s price, raising concerns about the token’s future prospects.

Is there room for a rebound?

Amid this bearish market performance, prominent crypto analyst Micheal Van De Pooppe has shared his perspective on SEI, suggesting that the token could be nearing a critical juncture.

Van De Pooppe highlighted that SEI was consolidating below the $0.30 level, which he identified as a ‘crucial resistance’ point. 

He noted that breaking through this resistance could pave the way for a significant upward move, potentially pushing the token’s price to $0.45.

However, to understand whether SEI is positioned for such a breakout, it’s essential to examine the underlying fundamentals that could influence its price movement.

Fundamental outlook on SEI

While the potential for a bullish breakout exists, SEI’s fundamentals presented a more complex picture.

Data from Coinglass indicates that SEI’s Open Interest had been mirroring its price action, showing a decline that could signal waning investor confidence. 

Over the past 24 hours, SEI’s Open Interest has decreased by approximately 5.40%, bringing its press time valuation to $58.60 million.

Similarly, the Open Interest volume dropped by 23.72%, now standing at $70.50 million.

The decline in Open Interest and volume suggested that traders were becoming more cautious, possibly due to the continued price erosion.

Open interest, which reflects the total number of outstanding contracts in the Futures market, often correlates with market sentiment. 

A decrease in Open Interest, especially during a downtrend, can indicate that fewer traders are willing to maintain or initiate new positions, potentially leading to reduced liquidity and further price drops.

If SEI is to reverse its current trend, it would likely require a resurgence in open interest, signaling renewed trader interest and confidence.

In addition to the declining Open Interest, SEI’s network development activity has also been on a downward trajectory.

According to data from Santiment, SEI’s development activity has dropped sharply from a peak above 13 in March to below 2 as of press time. 

Read Sei’s [SEI] Price Prediction 2024 – 2025

Development activity is a key metric that tracks the progress of a project’s codebase and overall ecosystem development.

A decline in this metric can be a red flag, suggesting reduced innovation and project updates, which can, in turn, affect investor sentiment and long-term confidence in the asset.