## SEI Faces Leverage Trading Dilemma: Whale Activity and Technical Indicators Send Warnings

As the market plunges into panic, SEI \[SEI\] recent performance reflects a complex trading environment. At the time of writing, SEI's trading price is $0.12, with a 24-hour change of +0.24%, and a 24-hour trading volume of $486.28K. Although the price appears stable, deeper risks lie beneath the surface.

**Whale Signals Reveal Market Truth**

Spot market data shows worrying signs. Large trader order book activity indicates that the decline is not driven by retail panic selling, but by strategic positioning of big players. CryptoQuant data shows that the average spot order size remains stable and resilient, suggesting that major players are still actively participating in the market. Even in a weak price environment, whale-level buy orders continue to emerge, hinting that a market bottom may be forming, although confidence still needs to be confirmed.

**Overheating Signals in the Derivatives Market**

More notably, abnormal activity is observed in the derivatives market. SEI's derivatives trading volume reached $32 million within 24 hours, while open interest (OI) continues to climb. This synchronized growth in volume and OI typically indicates traders are leveraging up to increase bets rather than reducing their positions. Such behavior is especially dangerous near market bottoms—any sharp volatility could trigger chain liquidations, further amplifying fluctuations.

**Turning Point in Technical Structure**

Technical signals present conflicting messages. The RSI indicator remains in a suppressed state, reflecting limited bullish momentum, but selling pressure is also weakening. More importantly, the MACD histogram is beginning to narrow, with the blue line gradually curving upward, suggesting that downward momentum is waning. Historically, such technical patterns often signal short-term rebound opportunities, though a full reversal cannot be guaranteed.

**Support Levels Determine Future Direction**

SEI's key support level is at $0.1261. If the price can firmly hold above this level, it will break the previous weak pattern after falling below $0.1206, potentially reversing the market structure. Conversely, if the rebound fails, the historic support at $0.0689 will become the next line of defense. An optimistic scenario is if the price returns above $0.20, which would fundamentally change the technical trend and eliminate current downward pressure.

**Risk Assessment and Trading Recommendations**

The core dilemma in the current market is that the combination of falling prices and rising derivatives trading volume indicates a leverage-driven market rather than confidence in a bottom. Savvy investors should focus on the $0.1261 threshold—this will determine whether the market is forming a bottom or falling into a deeper correction. Meanwhile, elevated OI levels mean that any breakout in either direction could be accompanied by intense price action.