Sky (SKY) increased by 11% in the past day, extending the protocol’s stable performance.
At press time, usage across the protocol has reached a high, generating $987,000 in charges in the last 24 hours, while volume reached $13.49 million in the same window.
In particular, the token volume also showed an upward trend, increasing by 5.78% to $23.25 million. Price and volume increases together indicate strengthening performance, and various signals indicate that SKY may extend this move.
Could SKY rise towards $0.67?
SKY It could climb to around $0.067, the level the token last touched in early June. The outlook builds on recent chart formation where SKY formed an inverted head-and-shoulders pattern.
A reversal head and shoulders usually occurs before a stronger move upward. The structure is still developing, but a clear break above the $0.050 neckline would open the door for a much broader upside.
If the upward momentum continues, SKY may record a 13.79% increase towards its June target, which is a move that will occur in the near term.
In the short term, the price may consolidate midway before reaching the final target. Once there, it will be seen that SKY has recouped all the losses it has accumulated since June.
Momentum indicators strengthen SKY’s bullish outlook
The convergence of multiple momentum indicators indicates that SKY may continue to extend its gains.
At the time of writing, the Money Flow Index, which tracks capital flowing into and out of an asset, was showing increasing inflows into the market.
MFI moved upwards and crossed the 50 mark. A reading above 50 signals that investors are entering a bullish phase, raising the possibility of more capital flows over the next few sessions.
Moving Average Convergence Divergence (MACD) After a few days of losing momentum, it regained strength, printing a green histogram bar.
The most important test comes as SKY approaches the neckline, where selling pressure usually concentrates. For the uptrend to continue, the MACD will need to move into positive territory while the MFI remains below 80; This is a combination that will make the rise sustainable.
Holder income provides incentive to lock tokens
Investors now have a stronger incentive to keep their assets locked in the protocol’s TVL due to the income flowing to SKY holders. According to DeFiLlama, this revenue has reached $301,000 since the beginning of July; That’s about 30% of the $1.1 million distributed in June.
The dynamic is self-reinforcing as the rising SKY price increases the likelihood of holders locking in their tokens and taking positions to earn rewards while taking advantage of higher prices.
Final Summary
- SKY rose 11% in one day as rising fees and transaction volume signaled renewed demand for the token.
- Increasing capital inflows and stable owner rewards give investors reason to expect another move towards $0.06.
