SEI Slides Despite Partnership News as Analysts Target $0.22 Recovery
- SEI drops 26% monthly as traders sell partnership news despite long-term adoption potential.
- Analysts mark $0.13 as key support, while TD Sequential signals weakening sell pressure.
- A confirmed technical breakout could place $0.22 as the next recovery target.
The price of SEI extended its decline on Friday, slipping about 1% over the past 24 hours and adding to nearly 10% losses from the previous session. The pullback has pushed monthly performance deeper into the red, with data showing a roughly 26% drop over the last 30 days, reflecting sustained weakness despite recent headline-driven momentum.
Partnership Gains Fade as Selling Pressure Returns
Earlier this week, SEI briefly rallied after confirmation of wallet integration with Xiaomi, a development that initially lifted prices by more than 2% on Dec. 10. However, the reaction proved short-lived. Traders moved quickly to lock in gains, erasing the advance and reinforcing a familiar market pattern where positive announcements fail to translate into lasting price support.
Market data shows that the pullback coincided with a sharp contraction in activity. Trading volume dropped 49% to about $129 million in 24 hours, signaling fading momentum after the news cycle ended. Analysts noted that partnership optimism had already been priced in during prior weeks, limiting upside once the announcement became official.
Adoption Narrative Remains Intact
Regardless, from a longer-term perspective, SEI continues to benefit from the strategic scope of the Xiaomi deal. The agreement is expected to give potential exposure to more than 680 million Xiaomi users by 2026, when stablecoin payment pilots are scheduled to begin.
While the timeline limits immediate financial impact, the integration strengthens the project’s visibility within consumer-facing platforms. Analysts emphasized that the lack of near-term revenue explains the muted market response.
With stablecoin payments not expected until mid-2026, traders appear focused on present liquidity conditions rather than future adoption scenarios. This dynamic has kept prices under pressure even as the broader narrative remains constructive.
Technical Levels Draw Analyst Attention
Despite recent losses, SEI is approaching a technical zone closely watched by market participants. The token has drifted toward the $0.13 area, which analysts describe as a decisive support level after the asset fell more than 67% from 2025 highs near $0.39.
One such crypto analyst, Ali Martinez, said $0.13 is now the line buyers must defend. He noted that the TD Sequential indicator has flashed a buy signal on higher timeframes, a setup historically linked to trend exhaustion.
If support holds, Martinez sees room for a rebound toward $0.22, representing nearly 70% upside from current levels. Michaël van de Poppe shared a similar view, focusing on SEI interaction with the 20-day moving average.
He said the asset is testing this short-term trend indicator and that a confirmed break above it would signal renewed strength. Van de Poppe added that reclaiming the $0.16 zone would mark a return to the broader trading range, opening liquidity targets between $0.24 and $0.27.
Related: Mantle Cools Off as Profit-Taking Follows a Strong 7% Surge
Negative Sentiment May Support a Reversal Case
Not to leave out, on-chain metrics show SEI Weighted Sentiment remains deeply negative, according to Santiment data. Social and analytical platforms reflect broad skepticism, a sign that confidence has yet to recover following months of declines.
Historically, analysts note that extreme negative sentiment combined with emerging technical buy signals often precedes countertrend moves. In this context, the current imbalance could favor upside if buyers step in at support and volume stabilizes.
For now, however, SEI’s price action suggests the market is weighing short-term weakness against improving technical signals as it searches for direction.
