SKYAI drops 19% – ONE level stands between bearish continuation and recovery

$SKYAI plunged more than 19% in 24 hours while trading volume climbed above $39M, reflecting aggressive sell-side activity.

The sharp decline emerged as market participants continued reducing exposure across the broader sector.

Trading activity increased despite the correction, showing that sellers remained highly active during volatility rather than stepping away from the market.

However, the rising volume failed to support recovery attempts because bearish pressure continued dominating short-term flows.

The market cap also dropped over 18% to nearly $215M, reinforcing the broader weakness surrounding the token.

Leveraged traders rapidly reduce exposure

Open Interest declined 13.37% to $76.78M as leveraged traders reduced positions during heightened volatility. The drop reflected fading speculative confidence after $SKYAI extended its correction across consecutive sessions.

Derivatives activity weakened as traders increasingly closed positions rather than maintaining aggressive directional exposure during uncertainty.

Besides that, the decline in Open Interest aligned with the broader price weakness visible across the chart structure.

The reduction suggested that several traders likely exited positions after recent downside acceleration intensified liquidation risks.

Participation across leveraged markets also appeared softer compared to earlier periods when SkyAI [$SKYAI] traded near local highs above $0.70.

Source: CoinGlass

Descending channel keeps $SKYAI trapped

$SKYAI continued trading inside a descending channel while struggling to reclaim the critical $0.335 resistance level.

The chart showed that sellers repeatedly defended the upper boundary of the channel following the sharp rejection from recent highs near $0.74.

Since then, the price structure has remained consistently bearish as lower highs continued forming throughout May.

Meanwhile, $SKYAI traded near the $0.214 region while approaching another key support area around $0.159.

The structure suggested that buyers still lacked enough strength to challenge the broader downtrend despite several short-lived rebounds earlier in the month.

Price also stayed well below the upper resistance zone, reflecting persistent selling pressure across the market.

If bearish control continue dominating the channel structure, $SKYAI could revisit lower support levels before any meaningful recovery attempt emerged.

However, reclaiming the $0.335 resistance would likely weaken the current bearish structure and improve short-term sentiment considerably.

RSI dropped toward 38 as bearish strength continued dominating $SKYAI’s short-term price action. The indicator remained below the neutral 50 level, reflecting weakening buyer control after several failed recovery attempts throughout May.

RSI also trended beneath its moving average, showing that downside pressure had continued building across recent sessions.

Source: TradingView

Binance traders still lean bearish

At the time of writing, Binance’s top traders remained net short, with 53.76% of accounts positioned bearish despite repeated recovery attempts from lower levels.

Long accounts represented only 46.24%, while the Long/Short Ratio stood near 0.86. The positioning reflected persistent caution among top traders even after $SKYAI attempted to stabilize above key support zones.

Additionally, bearish positioning continued dominating despite temporary rebounds during recent sessions.

Several traders appeared unconvinced that the current correction had fully ended, especially as the price remained trapped inside the descending structure. The imbalance between longs and shorts also reinforced the broader weakness visible across technical indicators and derivatives activity.

Source: CoinGlass

Conclusively, $SKYAI remained under strong bearish pressure as the price continued trading inside a descending channel below key resistance levels.

Open Interest weakened sharply, RSI stayed near oversold territory, and Binance traders maintained a net-short bias throughout the correction.

Although current conditions reflected heavy downside pressure, reclaiming the $0.335 resistance zone would likely improve sentiment significantly. Until then, sellers would likely continue controlling $SKYAI’s short-term structure.

Final Summary

$SKYAI continued trading inside a descending channel below the critical $0.335 resistance zone.

Open Interest dropped sharply as leveraged traders reduced exposure during $SKYAI’s ongoing correction.