SKYAI plunged more than 19% in 24 hours as trading volume surpassed $39 million, reflecting aggressive selling activity.
This sharp decline appeared as market participants continued to reduce their exposure to the entire sector.
Trading activity increased despite the correction, showing that sellers remained very active during the volatility rather than retreating from the market.
However, rising volume did not support recovery attempts as bearish pressure continued to dominate short-term flows.
The market cap also fell more than 18% to nearly $215 million, reinforcing the token’s broader weakness.
Leveraged Traders Quickly Reduce Their Exposure
Open interest decreased 13.37% to $76.78 million as leveraged traders reduced their positions amid heightened volatility. This drop reflects the loss of speculative confidence after SKYAI extended its correction over several consecutive sessions.
Derivatives activity weakened as traders closed more and more positions rather than maintaining aggressive directional exposure in times of uncertainty.
On top of this, the drop in Open Interest aligns with the broader price weakness visible in the chart structure.
This reduction suggests that several traders likely exited their positions after the recent acceleration of the decline intensified liquidation risks.
Participation in leveraged markets also appeared softer compared to previous periods where SkyAI (SKYAI) traded near local highs above $0.70.
Downward Channel Keeps SKYAI Trapped
SKYAI continued to trade in a descending channel while struggling to reclaim the critical resistance level of $0.335.
The chart shows that sellers repeatedly defended the upper boundary of the channel after the sharp rejection from recent highs near $0.74.
Since then, the price structure has remained consistently bearish as lower highs continued to form throughout May.
Meanwhile, SKYAI is trading near the $0.214 region while approaching another key support zone around $0.159.
The structure suggested that buyers still lacked enough strength to challenge the broader downtrend, despite several short-lived rebounds earlier this month.
The price also remained well below the upper resistance zone, reflecting persistent selling pressure in the market.
If bearish control continues to dominate the channel structure, SKYAI could revisit lower support levels before a significant recovery attempt emerges.
However, reclaiming the $0.335 resistance would likely weaken the current bearish structure and significantly improve near-term sentiment.
The RSI has fallen towards 38 as bearish strength continues to dominate SKYAI’s near-term price action. The indicator remained below the neutral 50 level, reflecting weakening buyer control after several failed recovery attempts throughout May.
The RSI has also been trading below its moving average, showing that downward pressure has continued to build over the past few sessions.
Binance traders still bearish
At the time of writing, Binance’s top traders remained net short, with 53.76% of accounts positioned short despite repeated attempts to recover from lower levels.
Long accounts accounted for only 46.24%, while the Long/Short ratio was close to 0.86. The positioning reflects continued caution among major traders, even after SKYAI attempted to stabilize above key support zones.
Additionally, bearish positioning continued to dominate despite temporary rebounds in recent sessions.
Several traders seemed unconvinced that the current correction was completely over, especially as the price remained trapped in the descending structure. The imbalance between long and short positions also reinforced the broader weakness visible in technical indicators and derivatives activity.
In conclusion, SKYAI remained under strong bearish pressure as the price continued to trade in a descending channel below key resistance levels.
Open Interest weakened sharply, the RSI remained near oversold territory, and Binance traders maintained a net-short bias throughout the correction.
Although current conditions reflect strong downward pressure, reclaiming the $0.335 resistance area would likely significantly improve sentiment. Until then, sellers will likely continue to control SKYAI’s short-term structure.
Final summary
- SKYAI continued to trade in a descending channel below the critical $0.335 resistance zone.
- Open interest fell sharply as leveraged traders reduced their exposure during SKYAI’s ongoing correction.
