SKYAI plunged 30.53% in the past 24 hours as sellers tightened their grip on the market and triggered one of the token’s sharpest daily declines in recent weeks.
Business activity ramped up aggressively during the economic downturn, with volume climbing 253.8% to $163.3 million despite the sharp decline.
The latest sell-off follows a period of exceptional strength.
As before reported by AMBCryptoSKYAI rose 80% to $0.3070, highlighting a clear surge in buyer interest after weeks of subdued price action.
However, buyers failed to maintain this lead, allowing the market to reverse sharply and erase a significant portion of the gains.
Trading activity remained elevated throughout the decline, reflecting strong participation from buyers and sellers.
Derivatives traders rushed for the exit
Speculative activity weakened significantly as indebted participants reduced their exposure during the recession.
Open interest fell 34.93% to $72.33 million, reflecting a substantial withdrawal of capital from the SKYAI derivatives markets.
The drop in open interest occurred alongside a drop in price, indicating that traders largely closed their positions rather than opening new aggressive bets against the token.
This type of behavior often appears when trust deteriorates and participants prefer to reduce risks rather than resort to additional leverage.
While the sharp contraction highlighted a weakening of speculative demand, it also eliminated a significant portion of excess market positioning.
Can SKYAI defend its support in its downtrend?
The price structure remained firmly bearish as SKYAI continuing to trade inside a descending channel that had guided the correction from its previous high near $0.80.
Recent candles approached the lower boundary of this channel while the price hovered around $0.14, placing the market near an important decision zone.
The closest support was around $0.13, while major resistance remained near $0.27. Technical indicators reinforced the cautious outlook.
The RSI fell to 35.86 and approached oversold territory, showing that bearish pressure remained dominant despite signs of the downward acceleration slowing.
MACD also maintained a bearish pattern with the MACD line remaining below the signal line and the histogram bars remaining negative.
However, the extended decline suggests that sellers have already exerted significant pressure, which could encourage stabilization if support persists.
Why do the best traders always bet more on SKYAI?
Despite the aggressive correction, Binance’s top traders maintained a particularly bullish stance. Long positions accounted for 70.07% of total positions, while short positions accounted for only 29.93%.
The resulting Long/Short ratio of 2.34 highlighted a strong preference for upside exposure, even after SKYAI lost nearly a third of its value in a single day.
Such positioning revealed that experienced traders largely viewed the decline as a temporary setback rather than confirmation of a prolonged downtrend.
However, this optimism also introduces risks. If the token continues to fall below nearby support levels, concentrated long exposure could create conditions for another wave of liquidations.
Nonetheless, traders appeared willing to absorb this risk, indicating continued confidence in the possibility of a recovery from current levels.
Is a basis for capitulation beginning to form?
SKYAI has approached a key area where several signals have begun to converge. Open interest contracted sharply, the RSI approached oversold territory, and price tested support near the lower boundary of its descending channel.
However, Binance’s top traders continued to favor long positions despite the decline. If buyers defend the $0.13 region, SKYAI could attempt a recovery towards higher resistance levels. Otherwise, a breakout would likely extend the current downtrend.
Final summary
- Open interest fell sharply as traders reduced leverage during the decline.
- Binance’s top traders remained strongly bullish despite SKYAI testing key support.
