Sei (SEI) token price plummets by over 70% from its December highs, reaching a low of $0.1722 this week

Despite this sharp decline, both technical and fundamental indicators suggest potential for a rebound. Notably, Sei's decentralised finance (DeFi) ecosystem has shown impressive resilience during the broader cryptocurrency market downturn.

Layer-1 blockchain token Sei (SEI) has seen its price plummet by over 70% from its December highs, reaching a low of $0.1722 this week. However, both technical and fundamental indicators suggest potential for a rebound.

As the cryptocurrency market continues to experience turbulence, Sei’s decentralised finance (DeFi) ecosystem has shown impressive resilience. Data from DeFi Llama reveals that the TVL in Sei’s network has surged to a record $340 million, doubling from its February low of $170 million. This growth stands in stark contrast to the asset losses experienced by many other layer-1 and layer-2 networks.

Key players in the ecosystem, such as Yei Finance and Sailor, have contributed significantly to this recovery. Yei Finance, a leading lending protocol, has seen its assets increase by 90% month-over-month to nearly $200 million. Sailor, a decentralised exchange, now holds $53 million in assets, while other platforms such as Stargate, Dragon Swap, and Avalon Labs have also expanded their holdings.

Further highlighting Sei’s momentum, World Liberty Financial, a firm led by Donald Trump, has made a notable acquisition of SEI tokens. The purchase, valued at over $100,000, signals confidence in the token’s long-term potential.

From a technical analysis perspective, Sei’s daily chart shows signs of a possible bullish reversal. The token has formed a double-bottom pattern at $0.2038, with a neckline at $0.7343—an established bullish indicator.

Additionally, a bullish divergence is evident as the MACD indicator has risen despite falling prices, and the RSI demonstrates higher highs and higher lows.

If these trends hold, and the bulls push the price above the neckline, we could see a recovery towards the next resistance level at $0.7343, presenting a potential upside of 265% from current levels.

However, a decline below the support at $0.180 would negate this bullish outlook, signalling further downside risk.

On the other hand, if the bears manage to break below the support at $0.180, it could open the door for a continuation of the downtrend, potentially driving the price towards the next support level at $0.105, which aligns with the 0.382 Fibonacci retracement level.