The broader cryptocurrency market is experiencing significant selling pressure, with both Bitcoin (BTC) and Ethereum (ETH) recording drops exceeding 5% in the past 24 hours. This widespread decline has adversely affected major altcoins, and Sei (SEI) has not been an exception.
SEI has seen a decline of over 5% today, extending its monthly losses to more than 21%. More critically, the current technical structure suggests that the token may be poised for a further downward movement.
Fractal Setup Indicates Further Downside Potential
On the weekly chart, SEI is currently trading within a large falling wedge formation that has influenced its price action since the beginning of 2024. This pattern is made more significant by SEI's apparent repetition of an almost identical fractal pattern that has previously led to multiple substantial corrections.
In both April 2024 and February 2025, SEI encountered resistance at the upper trendline of the wedge. Following each rejection, the token breached key support levels (indicated in red and green) and experienced sharp corrections of 81%, pushing the price back towards the lower boundary of the wedge before a temporary recovery.
The current chart analysis indicates that SEI is repeating this historical behavior.
Following its recent rejection from the upper resistance trendline, which was around $0.3576, the token has again fallen below both support zones. SEI is presently trading in the $0.15–$0.14 range, mirroring the price levels observed during previous 81% declines.
Given the near-perfect alignment of the fractal pattern, the technical indicators suggest that SEI may be preparing for another significant downward movement.
Future Outlook for SEI
As SEI has failed to maintain support at the red-zone level of $0.1582, the bearish fractal outlook remains valid. If this pattern continues to unfold as anticipated, the token could experience another correction of approximately 81%. Such a move would drive the price towards the lower boundary of the wedge, estimated to be around the $0.071 region. This represents a potential additional downside of 52% from current trading levels.
However, a critical level exists that could invalidate this bearish scenario. Should SEI manage a strong rebound and reclaim the 10-week moving average, currently at $0.2265, it could signal early signs of a recovery and break the repeating fractal structure.
Until such a reversal is evident, the prevailing technical pressure suggests that SEI may continue to decline before any substantial bullish recovery can take hold.