SEI price failed to capitalize on gains from the previous week and slumped, losing even its latest gains. Moreover, on-chain data shows that Open Interest data has dropped, raising concerns about another selling wave.

At press time, Sei was down nearly 3.74% intraday, trading close to the $0.27 mark. Let’s analyze Sei’s impact on investor sentiment in the short term and its ability to make a comeback from the lower levels.

Sei Price Seeks to Extend Decline Amid Decreased OI Data

Moreover, the recent drop in the Open Interest data can be attributed to the increased bearish pressure in Sei cryptocurrency. The derivatives traders seemed to be liquidating the long positions which has resulted in the domination of bears again.

As per Santiment, an on-chain data provider, the Open Interest contracts were nearly $71 Million out of which nearly $25 Million contracts have been liquidated. The 30% drop in the OI contracts indicates the waning interest of the traders and investors.

Additionally, the positive sentiments have dropped in the recent sessions due to which the weighted sentiment curve has dropped below the zero line to a bearish territory.

The weighted sentiment is an on-chain indicator which reflects the combined trader-investor bias. Analysis shows that the weighted sentiment curve has shifted to the bearish side.

Sei Price Prediction: Analysts Warns of Risk of Drop to Annual Lows

Sei price has been on a 7-day losing streak. The bears turned the tables in their favor once again as the price stepped below the dynamic support levels — the 20 and 50-day EMAs.

Furthermore, the price lags behind the 200-day EMA by 33%, indicating that a long term bearish trend is prevailing. Intraday trading volume is down 52% to $51.87 Million.

Sei is likely to touch down at the support levels of $0.25 and $0.22 if the bears consolidate their hold.

At the time of writing, the RSI line was at 41.4 points and that of the 14-day SMA line was at 50.82 points. A bearish crossover was observed between the RSI and SMA line, indicating continued selling in the short term.

Sei cryptocurrency has experienced a significant decline, losing last week’s gains. The open Interest (OI) contracts dropped 30%, with $25 Million liquidated, confirming the drop in investor interest. Moreover, the positive sentiment has decreased, pushing the weighted sentiment curve into bearish territory.