SkyAI [SKYAI] dropped 15% in the past 24 hours as of writing, shedding part of last week’s rally that had lifted the token out of a bullish pennant consolidation pattern.
Despite the sharp pullback, the broader structure remains constructive as SKYAI price action is still respecting its 50-day EMA, raising the possibility of another recovery attempt toward the $0.38 resistance.
The unfilled orders left behind by the aggressive buying activity that sit in the market gap between $0.075 and $0.090 could be the main reason behind the pullback. So, will the buyers regain control for further bullish advances?
Notably, whales owning more than $5 million worth of the asset account for 56.2% of the current tracked supply, according to Santiment. This high concentration suggests whale exposure is significant, which could drive demand if buyers return at current support levels.
Volatility signals a market reset
At press time, SKYAI’s one-day price volatility surged to around 10%, a sharp increase from the relatively subdued levels recorded through much of July. The spike confirms that market conditions have become significantly more active following the recent breakout and subsequent correction.
Higher volatility can create larger price swings in both directions, but it also gives buyers an opportunity to rebuild momentum if SKYAI successfully defends its current support. A sustained decline in volatility after the correction could further support a stabilization before another move higher.
Positive funding keeps bullish positioning alive
Nevertheless, the network’s Funding Rate remained positive at around 0.01%, suggesting that long positions still earn premiums over short positions. This indicates that bullish positioning remains present despite the recent 15% decline, although excessive positive funding could eventually increase liquidation risk if selling intensifies.
From a technical perspective, SKYAI needs to retake the imbalance zone between $0.13 and $0.25 in order to confirm the recovery setup. The first attempt was a failure, and it resulted in the current correction.
But this time, with the token appearing to be respecting the 50-day EMA and most on-chain metrics pointing to a potential reversal, the breakout looks more certain. In case buyers succeed in generating enough momentum to break past the zone, the token might be in for a progressive rally to the next resistance at $0.38.
Final Summary
- SKYAI has declined by 15% over the 24 hours to retest its 50-day EMA after a bullish pennant breakout.
- Whales control 56.2% of tracked supply, while positive funding and rising volatility could shape the next move toward $0.38.
