The SKYAI token plunged on May 14, erasing 48% of its recent rally gains after the price broke below a critical support level. The token, which had rallied nearly 4,200% between late March and early May, was trading at $0.4651, a 15.76% drop in 24 hours, according to data from Forex Factory.
The sharp decline was driven by a technical breakdown from a major demand zone that traders had expected to hold as support, according to analysis from AMBCrypto and TradingView charts. This breach has left the token vulnerable to further declines, with the next significant support area approximately 14% lower. The broader market downturn, which saw the total crypto capitalization fall 1.5% to $2.74 trillion, added to the selling pressure.
Despite the price drop, on-chain indicators suggest that buying interest has not completely evaporated. The Money Flow Index (MFI) fell from 91 to 73. While this indicates a slowdown in capital inflows, a reading above 50 still points to favorable conditions. Furthermore, the Chaikin Money Flow (CMF) remained above zero, showing that buy-side volume still outweighed sell pressure at press time. This resilience comes as the wider market sentiment, measured by the Fear & Greed Index, sits at 34, indicating "Fear."
Data from Coinglass suggests the sharp sell-off may have been a “stop hunt” designed to liquidate leveraged traders. The liquidation heatmap shows multiple clusters of liquidity sitting above the current price. These areas often act as a magnet for price, suggesting the breakdown may have flushed out leveraged long positions before a potential resumption of the uptrend. The move mirrors weakness in majors, with Bitcoin (BTC) and Ethereum (ETH) falling 2.04% and 1.41% respectively in the same 24-hour period.
This article is for informational purposes only and does not constitute investment advice.
