Sei (SEI), one of the most talked-about layer-1 blockchains, is under significant selling pressure after its token crashed to a key support level. The cryptocurrency has been struggling through September as both user activity and on-chain fundamentals deteriorated sharply.
Over the past 30 days, Sei’s network usage has fallen off a cliff. Data from Nansen shows the number of transactions plummeted by 87%, dropping to just 57 million, making it one of the worst-performing chains in the market this month. At the same time, active wallets fell by 24% to around 13 million, while fees collected on the network slipped by 12% to only $16,000.
The weakness has also shown up in Sei’s once-dominant gaming sector. According to DappRadar, unique active wallets in gaming dropped by 20%, settling at 13.45 million. Total value locked (TVL) in the ecosystem has shrunk by 17%, and the supply of stablecoins on Sei has fallen to $140 million — its lowest level since March and far below the year’s peak of $296 million.
On the charts, Sei has not fared any better. The token peaked at $0.3895 in July before tumbling to a low of $0.2645, where it now sits on a crucial support zone. It has already slipped below the 50-day exponential moving average, forming a descending triangle a bearish chart pattern often seen before further declines.
Momentum indicators paint a gloomy picture as well. The Relative Strength Index (RSI) has been trending lower, inching toward oversold conditions, while the MACD has dropped beneath neutral territory.
If sellers maintain control, Sei could be staring at a deeper correction with the next target near $0.1325, almost 50% lower from current levels. However, a break above the $0.3500 resistance line would be an early sign that the bearish outlook is weakening.
For now, Sei’s path looks difficult as investors weigh declining on-chain metrics against a fragile technical setup. Whether the network can turn around activity and restore confidence will likely determine the token’s next big move.
