SKYAI plunged 30.53% over the last 24 hours, marking one of the token's sharpest daily declines in recent weeks after an earlier 80% rally to 0.3070. According to reports from AMBCrypto, the latest sell-off followed a period of exceptional strength that had broken a prolonged corrective phase, with buyers failing to sustain the advance that had emerged from a descending channel. The token's price structure remained firmly bearish as it continued trading inside a descending channel that had guided the correction since its earlier peak near $0.80, with recent candles approaching the lower boundary while the price hovered around $0.14.
Trading activity accelerated aggressively during the downturn, with volume climbing 253.8% to $163.3 million despite the heavy drawdown, as reported by AMBCrypto. However, derivatives traders rushed for the exits as Open Interest dropped 34.93% to $72.33 million, reflecting a substantial withdrawal of capital from SKYAI derivatives markets. This decline in Open Interest occurred alongside falling prices, indicating that traders largely closed positions rather than opening aggressive new bets against the token. Such behavior often emerged when confidence deteriorated, with participants preferring to reduce risk instead of pursuing additional leverage, though it also removed significant excess positioning from the market.
Price structure remained firmly bearish as SKYAI approached the $0.13 support level, which represents the nearest support zone while major resistance remained near $0.27. According to AMBCrypto analysis, RSI fell to 35.86 and approached oversold territory, showing that bearish pressure remained dominant despite signs of slowing downside acceleration. MACD maintained a bearish configuration with the MACD line staying below the signal line and histogram bars remaining negative. However, the extended decline suggested that sellers had already exerted significant pressure, which could encourage stabilization if support continued holding. The token's approach to key support levels near the lower boundary of its descending channel presents a critical decision point for the near-term direction.
Despite the aggressive correction, Binance's top traders maintained a notably bullish stance with long positions accounting for 70.07% of total positions while short exposure represented only 29.93%, as reported by AMBCrypto. The resulting Long/Short Ratio of 2.34 highlighted a strong preference for upside exposure even after SKYAI lost nearly a third of its value within a single day. Such positioning revealed that experienced traders largely viewed the decline as a temporary setback rather than confirmation of a prolonged bearish trend. However, this optimism also introduced risk, as concentrated long exposure could create conditions for another wave of liquidations if the token continued falling below nearby support levels.
SKYAI approached a key area where several signals started converging, with Open Interest contracting sharply, RSI nearing oversold territory, and price testing support near the lower boundary of its descending channel. According to AMBCrypto analysis, if buyers defend the $0.13 support region, SKYAI could attempt a recovery toward higher resistance levels, while a breakdown would likely extend the prevailing downtrend. The combination of reduced leverage and oversold conditions suggests potential for stabilization, though the token's ability to hold support will be crucial for determining whether the recent correction represents a temporary setback or the beginning of a more sustained decline.
