SEI is facing a tough market environment right now. The price action has been struggling to find solid support, with the key $0.049 level already broken. Selling pressure remains heavy, and data from derivatives markets indicates that traders are turning cautious. At press time, Open Interest (OI) had fallen by 7% to $29 million. That drop suggests capital is leaving the market rather than flowing in.
On its own, that might not be a huge concern. But the bigger issue involves bullish traders, who are getting squeezed out.
Bulls are being forced out
Long liquidations have been rising as SEI struggles to regain any upward momentum. In the last 24 hours alone, long liquidations reached $553.2k. That number is significant when compared to the volume of sellers being forced out. Many traders had positioned themselves for a rebound, but the recent weakness has forced many of those positions to close early.
As liquidations increase, they create additional selling pressure. That makes it even harder for the price to stabilize. Over the last few sessions, this trend has become increasingly hard to ignore.
At the same time, market participation is fading. The steady decline in Open Interest suggests fewer traders are willing to keep exposure to SEI at current levels. Instead of buying the dip, many appear to be waiting for clearer signals before jumping back in. That hesitation gives sellers room to stay in control.
What comes next for SEI?
Right now, the bears clearly have the upper hand. At the time of writing, the token’s price action was trading aggressively below key Exponential Moving Averages (EMAs), which usually act as support levels. Falling OI combined with rising long liquidations rarely forms a bullish setup. Unless demand returns and liquidation pressure begins to ease, SEI could stay vulnerable to more downside in the short term.
For now, traders aren’t focused on the next rally. They’re watching to see whether the market can finally find a reason to stop selling. If the cards turn and bulls manage to gather enough momentum, a retracement to fill the imbalance zone around $0.06 could still happen, but it’s far from guaranteed.
