Sei price is still hovering around a key support level after the network introduced its first proposed post-quantum security upgrade, giving investors another fundamental catalyst despite a cautious technical outlook.
At the time of writing, Sei is trading at about $0.043, remaining below its major moving averages. Even though the announcement has not yet resulted in a breakout, it strengthens Sei’s long-term development roadmap as traders watch for signs of a sustained recovery.
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Why Is the Sei Price Trading Below Key Resistance?
The daily TradingView chart shows the Sei price trading below both its 50-day moving average at $0.0497 and the 200-day moving average at $0.0654, keeping the broader trend bearish.
Buyers continue defending support around $0.043, but reclaiming the 50-day moving average would be the first signal that momentum is improving.
Overall trading volume remains relatively low compared with previous rallies, suggesting buyers still lack the conviction needed to reverse the long-term downtrend. Unless prices rise above the nearest resistance level, sellers are likely to maintain control of the market.
The Sei price has remained below both major moving averages for several weeks, indicating that the broader trend has yet to reverse despite short-term buying interest.
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What Does CoinGlass Data Show About Sei Price Momentum?
CoinGlass data presents a mixed picture for the Sei price. Open interest has gradually declined throughout the past month, suggesting that many leveraged traders have stepped back from taking positions as the price weakened.
Declining open interest generally suggests leveraged traders are reducing exposure, often reflecting weaker speculative conviction during a downtrend.
At the same time, daily futures trading volume surged on July 28, indicating renewed participation from derivatives traders.
Liquidation data also points to rising market volatility, with both long and short positions being liquidated during recent price swings. Together, these signals suggest traders are anticipating a larger price move but remain divided on its direction.
A surge in trading volume without a confirmed breakout often indicates traders are positioning ahead of a potential directional move rather than reacting to one that has already occurred.
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Why Does Sei’s SIP-5 Proposal Matter for the Sei Price?
Sei’s official X account announced, “The first proposed plan for Sei to become quantum-secure is live.” The proposal, known as SIP-5, introduces “a post-quantum secure pathway for existing accounts,” allowing users to migrate to post-quantum cryptography if advances in quantum computing eventually threaten current encryption methods.
While the proposal is unlikely to trigger an immediate price rally, it demonstrates that Sei is prioritizing long-term infrastructure development rather than reacting to short-term market sentiment.
As concerns around quantum computing continue to grow across the blockchain industry, early planning for post-quantum security could strengthen confidence among developers, institutions, and long-term ecosystem participants.
Although the proposal does not change the network overnight, it signals Sei’s intention to prepare for future technological risks before they become immediate challenges.
Also Read: SEI Price Holds Critical Support as Bullish Targets Extend Above $1
How Does Network Activity Affect the Sei Price Outlook?
The latest statistics from DeFiLlama suggest that the total value locked (TVL) in Sei has dropped from approximately $48 million to around $42 million, indicating lower capital inflows into the network.
Lower TVL reflects reduced capital committed to Sei’s decentralized finance ecosystem, although rising wallet activity suggests user engagement has remained relatively resilient.
At the same time, active addresses have recorded several sharp increases in recent days, showing that users continue interacting with the network despite the weaker price performance.
The disparity indicates that the ecosystem is seeing stronger user activity than the price alone suggests. If this trend continues, improving network usage could support future demand once broader market sentiment strengthens.
Also Read: Sei Price Holds $0.046 as ZeroDev Integration Strengthens Ecosystem Outlook
What Could Happen Next for the Sei Price?
The Sei price continues to show a weak technical structure, with the token trading below its key moving averages, making $0.050 the first major resistance level to watch. If the price manages to break above that level, it could restore short-term momentum and attract additional buying interest.
On the downside, holding the $0.043 support remains critical to prevent another leg lower. At the moment, Sei is showing a divergence between its weak price action and improving long-term fundamentals.
The SIP-5 proposal showcases the network’s ambition to future-proof its ecosystem, while rising network activity suggests user engagement remains resilient despite the ongoing downtrend.
If buyers reclaim the 50-day moving average with stronger volume, sentiment could begin shifting in favor of the bulls. Until then, traders are likely to remain focused on whether improving network fundamentals eventually translate into sustained price momentum.
Cryptocurrency markets remain highly volatile, and traders should monitor price action, market sentiment, and upcoming catalysts before making investment decisions.
Also Read: SEI Price Prediction: Falling Wedge Signals Potential Rally to $0.40
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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