$25 Million Outflow Puts Sei Price under Pressure: What's Next?

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$25 Million Outflow Puts Sei Price under Pressure: What's Next?
Sei price noted a significant drop of 30% in the Open Interest data in the recent sessions.
At the time of writing, Sei was exchanging hands close to $0.27, recording a negative intraday development of 3.74%.

Sei price failed to capitalize gains from the previous week and slumped, erasing the recent gains. Moreover, as per the data by an on-chain analytics website, Open interest data has dropped, raising concerns of another selling wave among the investors.

At press time, Sei was down nearly 3.74% in intraday, trading close to $0.27. Let's Analyze whether Sei would continue to hurt the sentiments of the investors in the short term or 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.

<iframe title="Santiment Chart: Total Open Interest in USD (SEI), Price (SEI)" width="800" height="425" src="embed.santiment.net/chart?ps=sei&pt=SEI&df=2024-05-31T18:30:01.366Z&dt=2024-09-01T18:29:59.366Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>

Source: app.santiment.net

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 biasness of the traders and investors whether it is bullish or bearish at the moment. On analysis, the weighted sentiment curve has shifted to the bearish side indicating domination of sellers.
Sei Price Prediction: Analysts Warns Risk Of Falling Towards Annual Lows
Sei price has been on a 7 day losing streak wiping out the previous week's gains. The bears seemed to be turning the tables in their favor once again as the price has stepped below the dynamic supports of 20 and 50 days Exponential moving average.

Furthermore, The price lags 200 days exponential moving average by 33% indicating a long term bearish trend prevailing in the crypto. Also, the intraday trading volume has dropped by 52% to $51.87 Million indicating a decreased demand.

On the lower side, Sei may continue to extend its journey towards the support of $0.25 and $0.22 levels as the bears seemed to have claimed domination in the short term as well.

At the time of writing, the RSI line was placed 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 a continued selling in the short term.

Sei cryptocurrency has experienced a significant decline and dropped, erasing the previous week's gains. The open Interest (OI) contracts dropped by 30%, with $25 million liquidated, indicating waning interest of the investors. Moreover, the positive sentiment has decreased, pushing the weighted sentiment curve into bearish territory.

Alos, Sei has fallen below the key Exponential Moving Averages suggesting a bearish trend. Intraday trading volume dropped by 52% to $51.87 million. As of now, the price may continue to fall towards $0.25 and $0.22. RSI and SMA indicators show continued short-term selling pressure.