SKYAI recorded one of the steepest daily declines after losing 36.2% of its value in the past 24 hours as traders continued to flood the market with new activity.
Daily trading volume rose 70.85% to $43.16 million despite the heavy sell-off, showing that participants remained highly engaged during the correction.
The token’s market cap also fell to $238.26 million, reflecting the broad decline in valuation.
However, the strong increase in trading activity did not translate into sustainable purchasing power.
Instead, the higher volume was accompanied by aggressive selling pressure, indicating that market participants were actively repositioning as volatility increased in both the spot and derivatives markets.
Such conditions reflected increased uncertainty rather than renewed confidence, leaving SkyAI behind [SKYAI] under pressure as traders looked for signs of stability.
Why have traders lowered their leverage?
Derivatives activity subsequently weakened sharply Open interest rejected [OI] by 36.65% to approximately $69.66 million.
The sharp drop suggested that traders had quickly closed their leveraged positions during the correction rather than adding new exposure.
Rather than just reflecting new bearish bets, the decline pointed to 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 has made the derivatives market significantly lighter than before the sell-off.
Still, the shrinking OI failed to spur an immediate recovery as buyers remained cautious after the aggressive decline.
Until traders gradually regain their conviction, leverage participation would likely remain subdued despite increased trading activity.
Are currency inflows becoming a problem?
Spot flow data revealed a positive Exchange Netflow of around $340.75K during the last session. The measurement showed that more SKYAI tokens entered the exchanges than left them, increasing the amount of supply immediately available for trading.
Unlike currency outflows, which often reduce short-term selling pressure, these inflows suggested holders were preparing tokens for potential sales.
However, the relatively modest size of the inflow indicated that market participants had not yet initiated large-scale distribution.
Instead, traders appeared to react cautiously as they monitored price behavior near a key support area.
If foreign exchange inflows continue to increase in the coming sessions, there may be additional selling pressure.
On the other hand, the weaker inflows could indicate that the distribution has started to stabilize after the recent correction.
Can Buyers Defend Support?
SKYAI re-visited the demand zone around $0.168 after the latest sell-off erased much of the recent recovery.
Buyers reacted near this region and avoided an immediate drop below support, allowing the price to stabilize above the highlighted zone.
Yet the broader technical picture remained vulnerable. The MACD remained below the zero line while the histogram continued to print negative bars, showing that bearish pressure persisted throughout the correction.
Furthermore, the Parabolic SAR remained above the price near $0.436, confirming that sellers were still controlling the prevailing trend.
However, the repeated defense of the $0.168 support suggested that buyers had not fully surrendered yet.
If this demand zone continues to attract new demand, SKYAI could attempt a recovery towards the USD 0.335 resistance. Otherwise, losing this support would likely expose the token to another leg lower.
Can SKYAI prevent a new outage?
SKYAI remained under pressure as strong trading activity was accompanied by falling prices, shrinking Open Interest and positive Exchange Netflow.
Buyers defended the $0.168 asking zone, but technical indicators remained in favor of sellers.
If demand continues to increase 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 sustainable recovery develops.
Final summary
- SKYAI buyers defended the $0.168 demand zone despite rising currency inflows and selling pressure.
- Falling open interest suggested leverage was cooling, but bearish indicators still favored another downside test.