SEI holds key support after a cycle low sweep, while bullish divergences form and Sei Network records 2 million returning users.
A sharp market correction over the past week pushed many altcoins to fresh cycle lows. SEI was among the assets affected, as price moved into a closely watched support zone.
Market participants are now observing whether technical signals and network data align for a possible short term recovery.
SEI Tests Key Support After Broad Market Pullback
The wider crypto market saw strong selling pressure over the past week. Many altcoins recorded new cycle lows as liquidity declined across risk assets.
SEI followed this trend and moved into a long-tested support area.
According to Michaël van de Poppe, price action shows that SEI swept prior lows before stabilizing.
This move often attracts attention from traders watching for short-term reversals. The market response at this level remains central to near-term direction.
Pretty steep correction over the past week on the markets, resulting into many cycle lows on the #Altcoins.$SEI is one of them.
It swept the low.
The crucial factor going forward is a potential bounce upwards, as then, multiple bullish divergences can be found and that would… pic.twitter.com/9KtvVNfBxT
— Michaël van de Poppe (@CryptoMichNL) January 24, 2026
Technical charts show SEI trading below its 21-day moving average. However, holding support may allow prices to challenge that level again.
Traders continue to monitor volume and momentum signals closely.
Bullish Divergences and Technical Structure in Focus
Several technical indicators now show early signs of divergence. Momentum indicators have begun to rise while price remains near support.
This pattern often appears during periods of market stabilization.
Analysts note that a confirmed bounce could align with multiple bullish divergences. Such setups are often tracked during range bound market phases.
A move above the 21-day moving average would be closely watched.
Price structure currently resembles a bullish range deviation. This occurs when price briefly moves below support and then re-enters the range.
Market participants often view this as a reset rather than a breakdown.
Related Reading: SEI to Test Key Resistance at $0.128 Ahead of Potential Bullish Move
Network Activity Reaches New Milestones
Beyond price data, network metrics have drawn attention. According to Artemis, Sei Network reached two million average returning users.
This marked a new all-time high for the blockchain.
The data shows that returning users have tripled since early 2026. Growth has been linked to expanding applications and developer activity.
Interest around the upcoming Sei Giga upgrade has also increased engagement.
Wahh, look at that huge candle! 🕯️
According to @Artemis, the @SeiNetwork just created a new all-time high of 2 million average returning users! Since the beginning of 2026, the returning users on Sei have tripled, due to the immense ecosystem growth, and the highly anticipated… pic.twitter.com/3k9GxdFzUn
— Sjuul | AltCryptoGems (@AltCryptoGems) January 23, 2026
A representative from Artemis stated that user retention has improved steadily.
Network growth often provides context during periods of price weakness.
Market observers continue to track whether on chain activity aligns with future price stability.
SEI also recorded unusual buying activity near its support level. This was observed as price consolidated after the recent decline.
Such activity is often monitored for signs of accumulation.
As long as support remains intact, traders continue to watch nearby resistance levels.
Market behavior around the 21-day moving average remains a key reference point. Broader market conditions are expected to influence the next move.