SEI lost the support level of 0.1206 USD, dragging liquidity down and opening up the risk of sliding deeper into the old demand area around 0.0689 USD if the structure is not reclaimed soon.
In a context of extreme fear and a weakening cryptocurrency market, even strong projects face pressure. SEI has recorded sustained selling, and spot activity shows whales leaning towards selling, increasing the risk of 'selling on the downtrend' as sentiment remains fragile.
MAIN CONTENT
SEI breaks through support at 0.1206 USD, worsening the structure and increasing the likelihood of testing the 0.0689 USD area.
While the spot is weak, derivatives are rising sharply with volume and OI increasing, indicating the market is being driven by leverage.
The 0.1261 USD level is an important boundary to reduce the risk of turning old support into resistance.
SEI weakens after losing support at 0.1206 USD
Losing 0.1206 USD puts SEI in a vulnerable zone, where liquidity deteriorates quickly and the target for further decline near 0.0689 USD becomes prominent.
When the 0.1206 USD level is broken, the market state shifts from expecting continued growth to 'defensive', focusing on preserving liquidity. The selling pressure does not only come from retail investors, as behavioral data on the spot market shows large-scale orders appearing on the sell side.
After the breakdown of support, deteriorating liquidity conditions often make prices susceptible to being pulled back to lower liquidity 'pockets'. For SEI, the 0.0689 USD area is mentioned as a zone that previously had historical demand, so it may become a point for buyers to test their reaction if the decline continues.
If there is no quick recovery to reclaim important areas, weakened confidence may easily trigger sell-offs. In this scenario, volatility may increase as the market shifts to prioritize reducing risk rather than seeking short-term profit.
Traders increase exposure when prices fall due to a derivatives boom
Despite weak spot performance, SEI's derivatives are rising sharply: derivatives volume reached 32 million USD/24 hours and OI is increasing, indicating traders are adding positions rather than exiting.
The data cited in the post about derivatives volume shows a significant increase in speculative interest over the last 24 hours at the time of writing. When volume increases while OI rises amid weak prices, the common signal is that leveraged money is betting on the next direction rather than 'capitulating' en masse.
This behavior often implies that volatility expectations will expand. However, the downside is the increased risk of liquidation, especially when prices are trading below old support levels. Just one strong volatility swing can trigger forced position closures, causing volatility to amplify in both directions.
To monitor the derivatives picture (OI, funding, liquidation) and assess the degree of 'leverage' of the trend, some traders refer to tools on BingX as a supplementary observation channel before making risk management decisions.
Whales are still active as SEI goes down
The Spot Average Order Size indicator shows that large orders are still appearing consistently as SEI declines, suggesting that whales are participating in direction setting rather than just retail sell-offs.
When prices are weak but the average order size on the spot remains high, this often indicates the presence of large players. In this context, the market may simultaneously experience 'distribution' (intentional selling) and 'absorption' (buyers absorbing the selling pressure), causing short-term direction to depend heavily on the order flow from large-cap groups.
Therefore, although the general sentiment is poor, attributing it entirely to retail panic may not be accurate. Price structure may be influenced by liquidity points that whales want to test before the market chooses a clearer direction.
SEI needs to regain 0.1261 USD to avoid being swept away by liquidity.
RSI is still weak and MACD remains negative, but the downtrend shows signs of slowing; however, SEI needs to close above the 0.1261 USD area to improve the structure and reduce the risk of deep declines.
At the time mentioned, the RSI remains low, reflecting limited upward strength but selling pressure shows signs of slowing. MACD is still in the negative zone, but the histogram is narrowing and the MACD line is trending upward, sometimes a precursor to a short-term rebound.
However, these signals do not guarantee a reversal. Structurally, the 0.1261 USD level is seen as a key point: if not decisively reclaimed, old support may turn into resistance, causing the bounce to be sold off.
If failing to reclaim this area, fear sentiment continues to dominate and 0.0689 USD remains the area to watch. Conversely, a breakout above 0.20 USD could change the structure in a more positive direction and reduce downward pressure.
Conclusion
The behavior of SEI indicates a breakdown of support accompanied by strong derivatives activity, implying the market is driven by leverage and expectations of volatility rather than solid conviction.
During periods of fear, some long-term investors may monitor key technical thresholds to assess recovery potential. For SEI, 0.1261 USD is an important boundary between the stabilization scenario and the risk of sliding deeper into lower zones.
Frequently Asked Questions
How important is the 0.1206 USD level for SEI?
0.1206 USD is the key support area; when broken, the structure weakens and liquidity deteriorates, making SEI vulnerable to being pulled back to lower demand zones like 0.0689 USD.
Why do derivatives increase when SEI prices fall?
When derivatives volume and OI increase while prices are weak, this often reflects traders adding leveraged positions to bet on volatility, rather than exiting the market.
Does an increase in OI always signal a bullish trend?
No. An increase in OI only indicates that the total open positions have increased; if accompanied by falling prices, the risk of liquidation may be high and volatility may be strong in both directions.
What does SEI need to do to improve short-term structure?
SEI needs to decisively reclaim the 0.1261 USD area to avoid old support turning into resistance and reduce the risk of being pulled back to the 0.0689 USD area.
Source: https://tintucbitcoin.com/sei-phai-giu-ho-tro-then-chot-tren-007-usd/
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