SKYAI recorded one of its steepest daily declines after losing 36.2% of its value over the last 24 hours, while traders continued flooding the market with fresh activity.
Daily trading volume climbed 70.85% to $43.16 million despite the heavy sell-off, showing that participants remained highly engaged throughout the correction.
The token’s market capitalization also dropped to $238.26 million, reflecting the broad decline in valuation.
However, the surge in trading activity did not translate into sustained buying strength.
Instead, the elevated volume accompanied aggressive selling pressure, indicating that market participants actively repositioned as volatility intensified across both spot and derivatives markets.
Such conditions reflected heightened uncertainty rather than renewed confidence, leaving SkyAI [SKYAI] under pressure as traders searched for signs of stability.
Why did traders cut leverage?
Derivatives activity weakened sharply after Open Interest declined [OI] by 36.65% to approximately $69.66 million.
The sharp reduction suggested that traders had rapidly closed leveraged positions during the correction instead of adding fresh exposure.
Rather than reflecting new bearish bets alone, the decline pointed to widespread liquidation and voluntary position exits across the futures market.
However, the sizeable contraction also reduced speculative leverage that had previously amplified price swings. This reset left the derivatives market considerably lighter than before the sell-off.
Even so, the shrinking OI failed to encourage an immediate recovery because buyers remained cautious after the aggressive decline.
Until traders gradually rebuilt conviction, leveraged participation would likely remain subdued despite the elevated trading activity.
Are exchange inflows becoming a concern?
Spot flow data revealed a positive Exchange Netflow of roughly $340.75K during the latest 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 near-term selling pressure, these inflows suggested that holders prepared tokens for potential sales.
However, the relatively modest size of the inflow indicated that market participants had not yet triggered large-scale distribution.
Instead, traders appeared to react cautiously while monitoring price behaviour near an important support area.
If exchange inflows continue increasing over the coming sessions, additional selling pressure could emerge.
On the other hand, weakening inflows would suggest that distribution had begun to stabilize after the recent correction.
Can buyers defend support?
SKYAI revisited the demand zone around $0.168 after the latest sell-off erased much of its recent recovery.
Buyers responded near this region and prevented an immediate breakdown below support, allowing the price to stabilize above the highlighted zone.
Even so, the broader technical picture remained fragile. MACD stayed below the zero line while its histogram continued printing negative bars, showing that bearish pressure had persisted throughout the correction.
In addition, the Parabolic SAR remained above the price near $0.436, confirming that sellers still controlled the prevailing trend.
However, the repeated defense of the $0.168 support suggested buyers had not completely surrendered.
If this demand zone continues attracting fresh demand, SKYAI could attempt a recovery toward the $0.335 resistance. Otherwise, losing this support would likely expose the token to another leg lower.
Can SKYAI avoid another breakdown?
SKYAI remained under pressure as strong trading activity accompanied falling prices, shrinking Open Interest, and positive Exchange Netflow.
Buyers defended the $0.168 demand zone, but technical indicators continued to favor sellers.
If demand continued strengthening around the current support, the token could attempt a recovery toward higher resistance levels.
However, another decisive break below $0.168 would likely extend the correction before a sustainable rebound develops.
Final Summary
- SKYAI buyers defended the $0.168 demand zone despite rising exchange inflows and selling pressure.
- Falling Open Interest suggested leverage cooled, but bearish indicators still favored another downside test.
