Sei price has pulled back and moved into a bear market after falling by 22% from the year-to-date high.

Sei (SEI), a top layer-1 network, was trading at $0.30 on Thursday, a few points above this month’s low of $0.2635. Here are some of the top reasons why the Sei token is on the verge of a bull run.

Sei price technicals are bullish

The daily chart shows that Sei has been in an uptrend since bottoming at $0.1250 in April. The rebound has formed a series of higher highs and higher lows, creating an ascending channel. The token is now bouncing from the lower boundary of that channel.

Sei has also reclaimed the 50-day and 100-day Exponential Moving Averages, both of which have acted as strong dynamic support. Additionally, price has moved above the 23.6% Fibonacci retracement level.

Therefore, technicals suggest that it has more upside as buyers target the upper side of the channel at $0.3890, up by 30% above the current level. A jump above that level will point to more gains to the 50% retracement point at $0.4312.

Sei Network’s ecosystem growth

The other bullish catalyst for the Sei token is that its network growth is accelerating. 

Data compiled by DappRadar shows that Sei has continued to dominate the gaming industry. It had over 12.7 million unique active wallets in the last 30 days, making it the biggest chain. Its transaction count jumped by 8% to 36 million. 

The same trend is happening in Sei’s stablecoin ecosystem, where the total supply has jumped to $268 million, a few points below its all-time high of $297 million. The supply has jumped from $191 million on August 1, a sign that the growth is continuing. 

Additional data from Nansen shows network transactions surged 91% in the past 30 days to 51.2 million. Active addresses rose by 42% to 12.9 million, and network fees increased 25%.

Sei Network’s total value locked jumped to $675 million, with the top dApps being Yei Finance, Takara Lend, Sailor, and Stargate Finance.