Cryptocurrency Sky experiences a 11% surge in the previous 24 hours - What can investors count on in the near future for this digital asset?
Title: A Look at SKY Crypto: Eyeing the Skies or Hitting a Roadblock at $0.086?
Share TweetSKY crypto is poised for an uptrend, but faces a critical resistance at $0.086The altcoin's short-term momentum is sky-high, but caution is advised due to overbought conditions
It seems Sky Crypto, previously known as Maker [MKR] DAO, underwent a significant transformation last August. Rebranded to streamline user experience, the revamped SKY token, while retaining the existing MKR governance, serves as an upgrade, with each token convertible to 24,000 SKY tokens.
Over the past few days, SKY has witnessed a bullish rally of 24.8%, climbing from $0.031 on May 31 to reach $0.0788 at press time. Technically inclined observers point to a bullish short-term bias.
However, looking beyond the near-term prospects, signs indicate cause for concern. The longer-term outlook shows the 1-day market structure to be bullish yet cautious, with two retracement levels to be broken for bulls to truly flex their muscles.
SKY Pierces Local Highs, Uphold Three-Month Uptrend
Source: SKY/USD on TradingView
Since a steep bearish impulse move beginning in December, Sky Crypto has been on a recovery spree, falling from $0.1 to $0.036. This downtrend took place during the broader Bitcoin [BTC] retracement from $106k to $76k. Since February, the token has been on the rise, albeit with some hurdles.
1-day Fibonacci levels point to $0.086 as a crucial resistance level for the bulls to breach. A move above this level would signal that the token's upward trend is not a retracement of the bearish impulse, but a genuine bull run on the higher timeframes.
Source: SKY/USD on TradingView
A closer look at the 4-hour chart reveals robust buying pressure in the recent days. By analyzing the Fibonacci retracement and extension levels based on the surge from $0.06 to $0.081 in early May, we see promising signs of greater demand.
Increased OBV and a CMF reading of +0.09 suggest rising demand, while the RSI points to an intensely bullish momentum that may temporarily subside with a minor retracement in the coming days. Such a dip could retest the $0.074 support zone, after which the bullish momentum might resume.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion
Dive into the Sky: Current Sky Crypto Analysis
As of early June 2025, the SKY token appears to be under the influence of Greed, with a Fear & Greed Index of 64[2]. The token has witnessed gains, growing by 7.26% over the past month and benefiting from the launch of staking rewards[3][5]. However, predictions point to a potential short-term price decrease, with an anticipated drop to $0.050663 by June 7, 2025, representing a 23.15% decline[2].
Critical resistance levels for the SKY token currently stand at:- $0.067752- $0.068635- $0.070156[2]. Overcoming these levels will determine whether the token continues its upward trajectory or faces a correction.
Market dynamics show the recent repurchase of 4.33 million SKY tokens by a co-founder could signify a bullish outlook. Additionally, the introduction of staking rewards has sparked increased interest. Despite these positive factors, the cryptocurrency market's inherent volatility necessitates caution when making long-term investment decisions[1][2].
- In the light of the critical resistance at $0.086, even with bitcoin and altcoins rallying, the future progress of SKY crypto might face a challenge.
- While the short-term momentum for SKY crypto is considered sky-high, investors should approach the market with caution due to overbought conditions and possible retracement levels ahead.
- Apart from bitcoin, altcoins such as SKY are attracting attention thanks to technology innovations like staking rewards and remaining resilient amidst market volatility. However, for SKY tokens to truly outperform, one significant hurdle is breaking through the resistance at $0.086.
