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$SKYAI has remained one of the market’s strongest performers since the March recovery phase began. Capital inflows accelerated sharply during that stretch.
Between the 30th of March and the 4th of May, $SKYAI rallied by nearly 4,200%. That marked one of the cycle’s strongest advances.
Since then, the altcoin has retraced steadily, erasing nearly 48% of those gains from the chart.
Has $SKYAI lost its key support?
Chart analysis of $SKYAI [$SKYAI] suggested the decline may extend further from current levels.
The altcoin broke below a major demand zone that traders expected to hold as support. Instead, the breakdown pushed the price lower.
That shift left $SKYAI vulnerable to another decline toward the next lower demand zone.
A move into that zone would mark another 14% drop from press-time levels. Even so, the lower area may still provide a temporary floor for price.
Looking left on the chart, $SKYAI previously wicked into this zone before rebounding higher. That history kept buyers interested.
Are buyers still active despite the drop?
Despite a sharp 23% daily decline, buying activity still remained visible across the market.
The Money Flow Index (MFI), which tracks capital entering and leaving an asset, dropped from 91 to 73.
That decline reflected slowing capital inflows. However, an MFI reading between 50 and 80 still pointed to relatively favorable conditions.
That meant the recent drop had not fully shifted market structure into bearish territory.
On top of that, the Chaikin Money Flow (CMF) stayed above zero at press time. This showed buy-side volume still outweighed sell pressure despite weakening price action.
Could this decline be a stop hunt?
The Liquidation Heatmap framed the recent decline as a possible stop hunt.
This mechanism often forces early buyers out before price resumes its broader direction.
The $SKYAI heatmap showed multiple liquidity clusters sitting above current price levels.
These clusters often attract price over time as markets move toward available liquidity.
Under this setup, the recent breakdown may have flushed leveraged longs before another upward attempt develops.
Final Summary
- $SKYAI lost a major demand zone, increasing the risk of another 14% downside move.
- Liquidity clusters above price hinted that the recent decline may have flushed leveraged longs before another move higher.