SKYAI [SKYAI] has experienced a 29% decline over the past week, according to latest reports from AMBCrypto, marking a significant reversal from the bullish momentum that had lifted the token out of a consolidation pattern. Despite the substantial correction, the broader market outlook suggests the seemingly bullish asset could be heading for further downside in the near term, with selling pressure building and traders preparing for potential additional declines before the next rebound attempt.
The recent decline came after SKYAI moved into the overvalued zone of the Bollinger Bands, as reported by AMBCrypto. This overvalued zone, marked in red, represents an area where selling pressure typically increases after prices move significantly above their recent trading range. The rejection from this level suggests the price is now moving back toward a more balanced level on the chart. Using the Bollinger middle band as a potential reset zone, price could find support around $0.055, marked by the blue level, indicating there could still be more downside before SKYAI finds meaningful support.
Technical indicators present a mixed picture for SKYAI's near-term direction. The moving average ribbon, combining 20-day, 50-day, 100-day, and 200-day moving averages, shows that longer-term averages remain above shorter-term averages, suggesting the broader trend remains bullish despite current weakness. However, the 20-day and 50-day SMAs are moving toward a possible crossover, with the 50-day SMA at $0.07251 and the 20-day SMA at $0.05546. This setup does not confirm a rally but remains worth monitoring if a rebound occurs. The Chaikin Money Flow (CMF) remains positive at around 0.40, indicating that buying pressure has not completely disappeared despite falling from previous highs.
According to Santiment data reported by AMBCrypto, whales owning more than $5 million worth of the asset account for 56.2% of the current tracked supply. This high concentration suggests significant whale exposure, which could drive demand if buyers return at current support levels. The unfilled orders left behind by aggressive buying activity that sit in the market gap between $0.075 and $0.090 are identified as the main reason behind the pullback, though current selling pressure has intensified significantly.
Spot flow data reveals that selling pressure in SKYAI has continued for at least the past three days, with cumulative netflow showing roughly $245,000 worth of the asset being sold over this period, as reported by AMBCrypto. This marks a clear reversal from the accumulation seen between five and 10 days ago, when millions of dollars worth of SKYAI were bought through the spot market. If selling pressure continues to build, SKYAI could see further downside before making another attempt at a rebound, with the $0.055 level representing the next key support level based on technical analysis.
