Sei Forecast: Can SEI Soar After 29% Drop?

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After surprising the crypto crowd with its boisterous launch that achieved a $1 billion market capitalization in a day, Sei has started to recede. Recent charts show that there has been a 29% drop in the last 24 hours, indicating that people are going through a selling frenzy.

The native crypto of the layer 1 blockchain of the same name is currently active on multiple cryptocurrency exchanges. What is the reason behind the sudden drop? Is further downturn on the way for SEI, or will it soar?

Sei Drops by 29% After Crossing $1 Billion Market Cap Day Earlier

CoinMarketCap shows that Sei has dropped by nearly 30% (29.78%) in the last 24 hours, with the trading chart painting continuous reds.

At 6: 17 am EST, the DeFi crypto was valued at $0.18. SEI’s market capitalization has receded to a third of $1 billion and now rests at $331 million, and its trading volume has suffered a 40% decline.

What is SEI, and Why Did It Generate So Much Interest?

In its official whitepaper, Sei defines itself as a sector-specific layer specializing in trading and aiming to “bridge the gap between centralized and decentralized exchanges.”

Using the “Twin-turbo” consensus mechanism and combining it will multiple layers of parallelization, Sei states that it reduces latency and improves the throughput of the ecosystem.

The blockchain has also established a native order matching engine, capable of filling trades using frequent batch auctions that allow it to help prevent frontrunning and keep the prices fair.

The platform also provides a launchpad for creating native tokens, as evidenced by the recent tweet on X (formerly Twitter), which states that SEI is organizing an IDO.

Ahoy 🏴‍☠️ So much excitement around our upcoming token sale & launch.

Reminder our AMA session will be today in discord, 4:00pm UTC ⏰

Private round: August 17th 2:00pm UTC (Tomorrow)

Public IDO: August 18th 2:00pm UTC

Listing 21st 2:00pm UTC @sparrowswapxyz #sei #launchpad… pic.twitter.com/YdX1ra9pcf

— StormFinance | Launchpad #Base (@SeiStorm) August 16, 2023

These factors, and some unknown ones, allowed Sei to climb the charts within a day of being introduced. And now Sei is actively being traded on 18 cryptocurrency exchanges.

So, what is the reason for the downturn?

SEI Price Analysis Shows Nothing Suspicious About Recent Downturn

While the consecutive reds painted on the candle chart dampened the interest slightly, it was not unforeseen. Many cryptos have attaquickly in a $1 billion market capitalization and have gone through a similar ordeal.

A significant boost to Sei was given by listing and its unique fundamentals that novice investors can’t easily understand. The initial interest, which led to this token going up parabolically, attracted more investors, which pushed the token into the overbought zone. In yesterday’s price analysis article, we talked about how the token’s RSI went above 90, which indicated that a downtrend would soon follow – and it did.

That said, the token’s value is still close to what it was during the closing hours of August 15th, $0.1770, which acts as its current support.

The token’s current RSI is 42 (purple), closer to the oversold zone. That means we can see a bounce after more reds are painted and the token’s RSI drops below the 30 mark.

Another reason for SEI’s drop could be the airdrop, which became open to those who wanted to claim it 13 hours ago.

You can now claim your Sei Airdrop and Atlantic rewards here: https://t.co/h9XbMQTcou

This is just the start of the journey. We will see you on the blockchain, seilors.

— Sei Foundation (@Sei_FND) August 16, 2023

The new token holders who got the token for free could have gone on a selling frenzy, leading to SEI’s price falling. However, it is still speculation at this point.

Sei Alternative – Wall Street Memes

The drop in SEI’s price shows a trend shared with most coins that have quickly achieved a high market cap. Under these circumstances, Wall Street Memes would be a superior investment.

Following the inspiring pathway set by Wall Street Bets, a Reddit group that short-squeezed Gamestop to make it reach its all-time high, Wall Street Memes is a community that wants to leverage the community’s power to similarly mobilize the price of meme coins, turning them into assets that can generate wealth.

With its massive social media following, including 260k followers on Twitter, Wall Street Memes is already making waves during its current presale through its meme-posting.