While SKYAI recorded one of its steepest daily declines after losing 36.2% of its value in the last 24 hours, traders continued to flood the market with fresh activity.
Daily trading volume increased by 70.85% to $43.16 million despite heavy selling; This showed that participants were highly engaged throughout the correction.
The token’s market cap also dropped to $238.26 million, reflecting the broad decline in valuation.
However, the increase in trading activity did not mean that purchasing power was sustainable.
Instead, increased volume accompanied aggressive selling pressure; This suggests that market participants are actively repositioning as volatility intensifies in both spot and derivative markets.
Such conditions reflected increasing uncertainty rather than renewed confidence. SkyAI (SKYAI) Traders are under pressure as they search for signs of stability.
Why did investors cut leverage?
Derivatives activity weakened sharply Open Position (OI) decreased by 36.65% to approximately $69.66 million.
The sharp decline showed that investors were quickly closing leveraged positions rather than adding new risk during the correction.
The decline reflected widespread liquidations and voluntary position exits in the futures market, rather than merely reflecting new bearish forecasts.
But the great contraction also reduced the speculative leverage that had previously driven price fluctuations. This reset left the derivatives market considerably lighter than before the sell-off.
However, the narrowing OI failed to spur a rapid recovery as buyers remained cautious following the aggressive decline.
Until investors gradually rebuild their faith, leveraged participation will likely remain weak despite increased trading activity.
Are foreign exchange inflows becoming alarming?
Spot flow data revealed a positive Stock Net Flow of roughly $340.75K in the last session. The readings showed that more SKYAI tokens were being moved from exchanges to exchanges, increasing the amount of supply immediately available for trading.
Unlike exchange outflows, which typically reduce short-term selling pressure, these inflows indicate token holders are preparing tokens for potential sales.
But the relatively modest size of the inflow suggested that market participants had not yet triggered large-scale distribution.
Instead, traders appeared to react cautiously while monitoring price behavior near a key support zone.
If foreign exchange inflows continue to increase in the coming sessions, additional selling pressure may arise.
On the other hand, the weakening of inflows indicates that the distribution is starting to stabilize after the recent correction.
Can buyers defend support?
SKYAI It revisited the demand zone around $0.168 after the recent sell-off erased most of the recent recovery.
Buyers reacted close to this zone and prevented a sudden break below the support, allowing the price to stabilize above the highlighted zone.
Despite this, the overall technical picture remained fragile. Negative bars continued to print the histogram while the MACD remained below the zero line, indicating continued downward pressure throughout the correction.
Additionally, the Parabolic SAR remained above the price near $0.436, confirming that the sellers are still in control of the prevailing trend.
However, repeated defenses of the $0.168 support showed that buyers were not completely capitulated.
If this demand zone continues to attract new demand, SKYAI could attempt a recovery towards the $0.335 resistance. Otherwise, losing this support could cause the token to fall under another lower leg.
Can SKYAI prevent another failure?
SKYAI remained under pressure due to strong trading activity accompanying falling prices, reduced Open Interest and positive Stock Market Net Flow.
Buyers defended the $0.168 demand zone but technical indicators continued to favor the sellers.
If demand continues to strengthen around current support, the token may attempt to rally towards higher resistance levels.
However, another decisive break below $0.168 will likely extend the correction before a sustainable recovery develops.
Final Summary
- SKYAI buyers defended the $0.168 demand zone despite increased foreign exchange inflows and selling pressure.
- Falling Open Interest showed leverage cooling, but bearish indicators still favor another downside test.
