Sky (SKY) has been bullish on the market, with the asset gaining 12% in the last 24 hours. In fact, the technical chart seemed to point to the possibility of sustained upward momentum on the charts.
While on-chain activity charts a clear path at the time of writing, chart patterns suggest the coin could expand further and expand its orbit.
Is the funding rate overheating?
The clearest indicator indicating that the rise continues was the funding rate data. Funding rates constantly indicate which way capital is tilted in the market and whether long or short trades dominate the flow.
At the time of writing, the funding rate remained at a moderately high level and displayed a positive outlook. This showed that the bullish positioning had not turned extreme and the setup was still supporting the price.
What made this run look sustainable was the fresh capital flowing into the market along with the Open Interest increase. In fact, open interest is up 14.25% to $30.24 million at the time of this writing.
These inflows reached a total of $4.3 million in the last 24 hours. The mobilization of capital while the funding rate remains positive may be evidence that long-term investors still expect further rises and are taking positions accordingly without becoming overly bullish.
At press time, the funding rate was just 0.0054% – a moderately bullish reading that could be enough to keep the outlook intact.
Volume increases with price
Volume continued to increase along with price; This is a combination that points to positive momentum behind the altcoin.
At the time of writing, volume is up 106%, giving a reading of $31 million. A closer look at the continuous market revealed that the same sentiment continues in this segment as well.
The continuous market’s long/short ratio also climbed, reaching a new peak of approximately 1.27. This showed that most trading accounts were in an upward trend.
The long-short ratio measures whether bulls or bears are leading the market. A reading above 1 generally indicates more buying volume, while a reading below 1 indicates more selling volume.
In SKY’s case, the ratio continued to trend higher, meaning more accounts are shifting in the same direction as the altcoin continues its rise.
Is SKY looking at the next resistance level?
SKY showed bullish signs on the charts as the altcoin broke the descending resistance trend line it has been following for weeks.
Following this breakout, the price broke through another important horizontal resistance level and moved higher. For a confirmed bullish view, the price must close comfortably above this level and continue to form upside candles.
If buying pressure continues, two important interest levels will come into play, marked by two boxes on the chart. Clearing these will change the price outlook in a meaningful way.
At the time of writing, the Accumulation/Distribution indicator, which tracks whether buying or selling is dominant, showed that the former is in control, implying that SKY could lead to further rises.
Final Summary
- With money flowing into the market, SKY increased by 20% in one day, indicating that investors can bet that the rise will continue further.
- Increasing volume and increasing bias towards buyers signaled real momentum behind this move.
