Deep Dive
1. Technical Downtrend (Bearish Impact)
Overview: SEI is trading at $0.105, well below its 7-day SMA ($0.107) and 200-day SMA ($0.222). The RSI-14 at 32.63 indicates oversold conditions but no strong reversal signal, while the MACD histogram is negative (-0.0015), confirming bearish momentum.
What this means: When a coin consistently trades below its major moving averages, it signals a lack of buyer conviction and reinforces a downtrend. The oversold RSI suggests selling may be exhausted, but without a bullish catalyst or volume surge, it often leads to sideways consolidation or further drift lower. The immediate pivot to watch is $0.104; a break below could target the recent swing low of $0.100.
What to look out for: A daily close above the 7-day SMA ($0.107) with rising volume could signal short-term stabilization.
2. EVM-Only Transition & User Migration (Mixed Impact)
Overview: Sei Network is undergoing a major transformation via its SIP-3 "Giga" upgrade, shifting to a fully EVM-compatible Layer-1 and phasing out Cosmos IBC support by March 2026. This requires users to migrate assets like USDC.n to native USDC.
What this means: While the transition aims to simplify the stack and boost long-term performance, it introduces near-term friction and uncertainty. The forced migration could lead to temporary reduced activity or liquidity outflows as users navigate the change, weighing on short-term price sentiment despite the strategic upside.
What to look out for: Clarity on migration tools and deadlines from the Sei team, as smooth execution could turn this from a headwind into a catalyst.
3. Recent Flash Loan Attack (Bearish Impact)
Overview: On January 11, 2026, a flash loan attack drained approximately $240,000 in WSEI tokens from the Synnax contract on Sei, as reported by BlockSec.
What this means: Security exploits, even if isolated, can erode trust in a network's DeFi ecosystem. The timing—amid a broader market decline—amplifies negative perception, causing some holders to reduce exposure due to perceived risk, contributing to selling pressure.
What to look out for: Updates on security audits and any measures taken to reimburse affected users, which could help restore confidence.
Conclusion
SEI's 24h drop reflects a combination of persistent technical weakness, near-term operational risks from its EVM transition, and residual concerns from a recent security exploit. While long-term developments like Bhutan's validator commitment are positive, the market is currently prioritizing immediate uncertainties over future potential.
Key watch: Can SEI hold the $0.100–$0.104 support zone, and will developer communication around the March upgrade ease migration fears in the coming days?