Sei price is still hovering around a key support level after the network introduced its first proposed post-quantum security upgrade, giving investors another fundamental catalyst despite a cautious technical outlook.

At the time of writing, Sei is trading at about $0.043, remaining below its major moving averages. Although the announcement has not yet triggered a breakout, it adds to Sei’s long-term development roadmap as traders look for signs of a sustained recovery.

Why Is the Sei Price Trading Below Key Resistance?

The daily TradingView chart shows Sei trading below both its 50-day moving average at $0.0497 and its 200-day moving average at $0.0654, leaving the broader trend bearish.

Buyers continue to defend support near $0.043, but a move back above the 50-day moving average would be the first sign that momentum is improving.

Trading volume remains relatively low compared with previous rallies, suggesting buyers still lack the conviction needed to reverse the long-term downtrend. Unless the price climbs above the nearest resistance level, sellers are likely to remain in control.

Sei has stayed below both major moving averages for several weeks, indicating that the broader trend has not yet reversed despite short-term buying interest.

What Does CoinGlass Data Show About Sei Price Momentum?

CoinGlass data paints a mixed picture for Sei. Open interest has gradually declined over the past month, suggesting that many leveraged traders have stepped back as the price weakened.

Declining open interest typically indicates that leveraged traders are reducing exposure, often reflecting weaker speculative conviction during a downtrend.

At the same time, daily futures trading volume surged on July 28, showing renewed participation from derivatives traders.

Liquidation data also points to rising market volatility, with both long and short positions being liquidated during recent price swings. Taken together, these signals suggest traders are anticipating a larger move, but they remain divided on its direction.

A surge in trading volume without a confirmed breakout often suggests that traders are positioning ahead of a potential directional move rather than reacting to one that has already occurred.

Why Does Sei’s SIP-5 Proposal Matter for the Sei Price?

Sei’s official X account announced, “The first proposed plan for Sei to become quantum-secure is live.” The proposal, known as SIP-5, introduces “a post-quantum secure pathway for existing accounts,” allowing users to migrate to post-quantum cryptography if advances in quantum computing eventually threaten current encryption methods.

While the proposal is unlikely to trigger an immediate price rally, it shows that Sei is focusing on long-term infrastructure development rather than reacting to short-term market sentiment.

As concerns around quantum computing continue to grow across the blockchain industry, early planning for post-quantum security could help strengthen confidence among developers, institutions, and long-term ecosystem participants.

Although the proposal does not change the network overnight, it signals Sei’s intent to prepare for future technological risks before they become immediate challenges.

The first proposed plan for Sei to become quantum-secure is live. — Sei (@SeiNetwork) July 28, 2026

The first proposed plan for Sei to become quantum-secure is live.

How Does Network Activity Affect the Sei Price Outlook?

Latest statistics from DeFiLlama suggest that total value locked, or TVL, in Sei has fallen from about $48 million to around $42 million, indicating lower capital inflows into the network.

Lower TVL reflects reduced capital committed to Sei’s decentralized finance ecosystem, although rising wallet activity suggests user engagement has remained relatively resilient.

At the same time, active addresses have recorded several sharp increases in recent days, showing that users continue interacting with the network despite weaker price performance.

That divergence suggests the ecosystem is seeing stronger user activity than the price alone implies. If the trend continues, improving network usage could support future demand once broader market sentiment improves.

What Could Happen Next for the Sei Price?

Sei continues to show a weak technical structure, with the token trading below its key moving averages. That leaves $0.050 as the first major resistance level to watch. A break above that level could restore short-term momentum and attract additional buying interest.

On the downside, holding the $0.043 support remains critical to prevent another leg lower.

At present, Sei is showing a divergence between weak price action and improving long-term fundamentals. The SIP-5 proposal highlights the network’s ambition to future-proof its ecosystem, while rising network activity suggests user engagement remains resilient despite the ongoing downtrend.

If buyers reclaim the 50-day moving average with stronger volume, sentiment could begin shifting in favor of the bulls. Until then, traders are likely to keep watching whether improving network fundamentals eventually translate into sustained price momentum.

Cryptocurrency markets remain highly volatile, and traders should monitor price action, market sentiment, and upcoming catalysts before making investment decisions.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.