SKYAI recorded one of its biggest daily declines after losing 36.2% of its value over the past 24 hours as traders continued to flood the market with new activity.
Daily trading volume soared 70.85% to $43.16 million despite the heavy selling, showing that participants remained highly engaged throughout the correction.
The token’s market capitalization also dropped to $238.26 million, reflecting the broad drop in valuation.
However, the sharp increase in commercial activity has not translated into sustainable purchasing strength.
Instead, the high volume was accompanied by aggressive selling pressure, indicating that market participants actively repositioned as volatility intensified in the spot and derivatives markets.
Such conditions reflected increased uncertainty rather than renewed confidence, leaving SkyAI (SKYAI) under pressure as traders looked for signs of stability.
Why have traders reduced their leverage?
Activity on derivative products weakened significantly after Open interest decreased (OI) by 36.65% to approximately $69.66 million.
This sharp reduction suggests that traders quickly closed their leveraged positions during the correction instead of adding new exposure.
Rather than reflecting only new bearish bets, the decline highlighted widespread liquidation and voluntary exits from positions in the futures market.
However, the significant contraction also reduced the speculative leverage that had previously amplified price swings. This reset left the derivatives market considerably lighter than before the selloff.
Even so, the decline in OI failed to encourage an immediate recovery as buyers remained cautious after the aggressive decline.
Until traders gradually restore conviction, leveraged participation will likely remain subdued despite high trading activity.
Are foreign exchange flows becoming a concern?
Spot flow data revealed a positive Exchange Netflow of around $340.75K during the last session. The reading showed that more SKYAI tokens moved onto exchanges than left them, increasing the amount of supply immediately available for trading.
Unlike exchange outflows, which often reduce short-term selling pressure, these inflows suggest that holders have prepared tokens for potential sales.
However, the relatively modest scale of the influx indicates that market participants have not yet triggered large-scale distribution.
Instead, traders appeared to react cautiously while monitoring price behavior near an important support zone.
If FX flows continue to increase over the next few sessions, additional selling pressure could emerge.
On the other hand, a weakening of inflows would suggest that the distribution has started to stabilize after the recent correction.
Can buyers defend their support?
SKYAI revisited the demand zone around $0.168 after the latest sell-off erased much of its recent rally.
Buyers responded near this region and prevented an immediate break below support, allowing price to stabilize above the highlighted area.
Despite everything, the technical situation as a whole remains fragile. The MACD remained below the zero line while its histogram continued to print negative bars, showing that bearish pressure had persisted throughout the correction.
Additionally, the Parabolic SAR remained above the price near $0.436, confirming that sellers were still in control of the dominant trend.
However, repeated defense of the $0.168 support suggests that buyers have not completely given up.
If this demand zone continues to attract new demand, SKYAI could attempt to rebound towards the $0.335 resistance. Otherwise, losing this support would likely expose the token to further decline.
Can SKYAI avoid another outage?
SKYAI remained under pressure as strong trading activity was accompanied by falling prices, decreased open interest, and positive net trading flow.
Buyers defended the $0.168 demand zone, but technical indicators continued to favor sellers.
If demand continues to strengthen around current support, the token could attempt a recovery towards higher resistance levels.
However, another decisive break below $0.168 would likely extend the correction before a lasting rebound develops.
Final Summary
- SKYAI buyers defended the $0.168 demand zone despite increasing FX flows and selling pressure.
- The decline in open interest rates suggests cooling leverage, but bearish indicators still favor another test to the downside.
