With the SKY market remaining relatively calm, long-term holders have begun to reposition. According to Arkham data, an address linked to dragonfly_xyz transferred 137 million SKY, worth $9.05 million, to Coinbase.
These tokens were purchased from Binance five years ago, valued at approximately $20.45 million.
Since then, SKY has faced extreme downward pressure. Now, these tokens have lost over $11.4 million in value.
The token transfer to exchanges could either mean preparation to sell or liquidity exposure. If sold, the sale would result not only in $11 million in losses for the holder but also cause significant market pressure on SKY.
SKY remains highly bearish
In addition to this major market transfer, most of the SKY market participants remain skeptical. On Binance, for example, sellers have dominated the market over the past month.
According to Coinalyze data, SKY recorded 579 million in sell volume over the past week, while buy volume dropped to 545 million.
Over this period, the Buy Sell Delta dropped to -31 million, a clear sign of aggressive perps selling. On the spot side, the altcoin saw 42 million in sell volume, further confirming this market skepticism.
Traditionally, when sellers dominate the market, market structure weakens, and more price chart losses follow.
What’s next for the altcoin?
SKY has traded within a multi-month descending channel since facing rejection at $0.09. The altcoin has faced intense bearish pressure, dropping to a low of $0.064.
As of this writing, SKY traded at $0.065, down 0.19% on the daily charts, extending its 7% weekly decline. With the altcoin hovering around $0.06, the downward momentum remains extremely elevated.
In fact, SKY’s directional indicators confirm these market conditions. As such, ADX sits around 28, while the negative index (-DI) holds around 27.
Likewise, the positive index (+DI) now sits at 1.6. With ADX and -DI above the positive index, it suggests that the bearish trend is stronger.
Such a directional setup acts as a directional continuation signal. Thus, the prevailing trend is highly likely to continue.
At the same time, the altcoin’s Relative Strength Index (RSI) dropped to 26, falling deeper into oversold territory. With RSI at such low levels, it suggests that sellers have total control of the market.
Taken together, these two indicators suggest that bears have the upper hand and that SKY could see further losses. If the trend continues, SKY could drop to $0.060.
For a trend reversal, the altcoin must clear May losses and close above $0.083.
Final Summary
- The address linked to dragonfly_xyz transferred 137 million SKY, worth $9.05 million, to Coinbase, resulting in an unrealized loss of $11.4 million.
- SKY remains extremely bearish, with the likelihood of dropping to $0.060.
