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SkyAI [$SKYAI] declined over the past day, with the asset dropping 15% at press time after delivering a strong monthly performance that pushed gains to 544%.
Despite the rally, there is no clear confluence among investors in the market, as both spot and perpetual traders now appear to lean bearish on the token.
Outflows weigh on the market
There has been a significant capital outflow from the $SKYAI perpetual market, pushing Open Interest (OI) down by roughly 16% as of writing.
OI recorded a $25.7 million outflow as the asset’s price declined. Part of the drop came from liquidations triggered by traders’ stop losses, which accounted for $261,520 in losses. However, the majority of the outflow resulted from traders willingly closing positions in the market.
At the same time, trading volume has increased, with short traders beginning to dominate activity. This shift appeared in the Long/Short Ratio, which dropped below 1 in favor of sellers.
Notably, the ratio had fallen to 0.92, suggesting a widening gap between long and short positions in the perpetual market.
Spot market activity weakens
The spot market has also shown increasingly bearish signals as buying activity continues to fade.
After ten consecutive days of purchases totaling roughly $93.25 million, investors appeared to build a structural base that supported $SKYAI’s rally. However, that momentum now seems to have weakened. As of the 11th of May 2025, the spot market has recorded an outflow of $1.15 million, hinting that bearish momentum may be building as sellers gradually regain control.
Large outflows during a price decline often suggest that bears are taking over the market, with spot activity acting as a key driver of downside pressure.
Notably, although recent outflows have outweighed inflows, the broader market structure still points to lingering bullish confidence.
Funding rate remains positive
At the time of writing, perpetual market data showed a Funding Rate of 0.0380%, indicating that a significant portion of the roughly $160 million still left in the market remains under buyers’ control.
Until the Funding Rate turns negative, buyers are likely to retain some influence over the perpetual market. For now, this suggests $SKYAI’s recent decline may still represent a minor retracement rather than a full bearish reversal.
Final Summary
- $SKYAI recorded a massive $25.7 million outflow, with most of the capital leaving through voluntary trader exits.
- The funding rate remains positive, suggesting the pullback could be temporary.