SEI is trading at a low price, on-chain data reveals a different story

Growth in fundamental factors often serves as a foundation for the long-term trends of the market, and SEI is sending increasingly clear signals indicating that this momentum is quietly building beneath the surface of prices.

On the 4-hour timeframe, SEI remains trading in the lower half of the wide trading range, continuously being held below the EMA band and yet to regain short-term trend control.

This technical structure keeps the risk level high, as the downside potential continues to extend toward the weak bottom zone around $0.1216, should the current support layer fail to hold.

Source: TradingView Notably, the narrowing price range of Sei Network (SEI) at the lows reflects more of a hesitant sentiment rather than a withdrawal of capital. The token remains locked in a tight accumulation phase, even as market attention and participation levels increase in other areas.

DEX Boom While Price Remains Constrained

SEI’s on-chain activity is accelerating significantly, despite the price still oscillating in a subdued state. In just two weeks, trading volume on DEX platforms has surpassed $400 million, reflecting a substantial increase in user engagement and trading flows at the lower price levels.

Source: DefiLlama This divergence is highly significant. When on-chain data shows increasing heat while the price moves sideways, it often indicates a stealth accumulation process, preparing for a strong volatility phase, rather than distribution pressure — especially when this phenomenon occurs near long-term support zones.

Derivatives Market Positioning Strengthens Beneath the Surface

The derivatives market is also sending a similar underlying signal. Over the past 90 days, SEI’s perpetual contract trading volume has surged by 19,527%, despite spot prices remaining tightly below the EMA band.

Source: XS This divergence suggests traders are no longer focusing on short-term price volatility but are proactively positioning for future scenarios. Instead of reacting to current weakness, derivative flows are quietly building positions.

Market history has repeatedly shown: when perpetual volume spikes amid prolonged sideways price action, it often signals energy accumulation for a powerful breakout in a clear direction, rather than just a prolonged sideways trend.

Is SEI Accumulating Power for a Breakout?

From a technical structure perspective, SEI is currently compressing within a narrow range, caught between a clearly defined risk zone and a potential growth zone that seems to be “pre-shaped.”

If the $0.1216 level is broken, downward pressure could intensify, pushing the price toward weaker bottoms. Conversely, in a positive scenario, reclaiming the EMA band would be a key signal indicating momentum is shifting favorably for bulls.

Source: X A breakout from the current accumulation zone would quickly bring the $0.18–0.20 supply zone back into market focus. Notably, SEI’s current price pattern bears many similarities to Binance Coin (BNB)’s accumulation phase before its strong expansion in 2024.

Therefore, the $0.20 level is considered a critical point. A decisive breakout above this mark would not only confirm a trend reversal but could also open room for a larger growth cycle, targeting the $1.5 zone if momentum continues to be maintained.

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