Sei Price Reaches Bottom as DeFi TVL Hits All-Time High Despite Crypto Crash

Sei, a layer-1 cryptocurrency, has been experiencing a significant decline in price over recent months. This week, it reached a low of $0.1722, marking a drop of over 70% from its peak of $0.7343 in December. Despite the ongoing crypto market crash, Sei’s decentralized finance (DeFi) ecosystem continues to show strong growth. The total value locked (TVL) in Sei’s DeFi network surged to an all-time high of $340 million, doubling from $170 million in February. This growth is noteworthy as many other blockchain networks have seen a reduction in TVL during the current market downturn.

The Sei ecosystem’s growth is fueled by several key players. Yei Finance, a prominent lending protocol, has accumulated nearly $200 million in assets, showing a 90% increase from the previous month. Other platforms like Sailor, Stargate, Dragon Swap, and Avalon Labs have also contributed to this growth. In addition, Sei’s price may gain support from increasing interest in the token. For example, Donald Trump’s World Liberty Financial recently acquired over $100,000 worth of SEI tokens, indicating a belief in the token’s future potential.

From a technical perspective, Sei’s price chart reveals a strong downtrend over the past few months, with the price dropping from $0.7343 in November to its recent low of $0.1722. However, there are bullish signals emerging. The token has formed a double-bottom pattern around the $0.20 mark, which is typically a sign of a potential reversal. Additionally, Sei is showing a bullish divergence on the MACD indicator, with the MACD rising while the price has fallen. The Relative Strength Index (RSI) is also displaying higher highs and higher lows, indicating increasing upward momentum.

Given these technical indicators, there is a possibility of a rebound in the coming days. The next major price level to watch would be $0.7343, the previous high from December, which represents a 265% increase from the current level. However, if the price falls below the support level at $0.180, the bullish outlook would be invalidated, and further downward movement could be expected.

In conclusion, while Sei’s price has experienced significant losses recently, the growing DeFi ecosystem and favorable technical patterns suggest that a rebound could be on the horizon, with the potential for a significant price recovery if the market conditions remain favorable.