Bears Circle SKY: Will Momentum Tip Further to the Downside?

• SKY is hovering at $0.064, down 6%.
• Trading volume has declined by 47%.

The fearful red market continues as expected, with the crypto prices losing momentum, revisiting former lows. A very few tokens are charted in green, but whether that trend carries over or joins the existing line is the concern. Meanwhile, SKY has registered a 6.73% loss within the last 24 hours. 

The token traded at a high of $0.07041 in the early hours, and with the bearish control in the SKY market, the price has slipped to a low of $0.06423. At press time, the asset traded at around $0.06461 with a market cap of $1.48 billion. Additionally, the trading volume of SKY has plummeted by 47.57% to $24.7 million. 

On the 4-hour trading chart, the SKY price could fall toward the support at the $0.06012 range. Assuming the downside correction is reinforced, it might trigger the formation of the death cross, and the bears take the asset’s price to retrace, trading below $0.05640. 

Upon a momentum reversal of SKY, it might nullify the recent losses. The price is expected to rise to the $0.06853 resistance level. If the bullish pressure gains more traction, the golden cross could unfold, and the mighty bulls could push the price up above $0.07275. 

SKY Market Signals a Bearish Turn as Indicators Weaken

The Moving Average Convergence Divergence (MACD) line of SKY is positioned below the signal line, which implies a short-term bearish shift. As both the lines remain above the zero line, the broader trend shows a bullish trait. It is experiencing a temporary pullback within the trend.

SKY chart (Source: TradingView)

Besides, the Chaikin Money Flow indicator is found at 0.11 points to moderate buying pressure in the SKY market. Notably, capital inflows are outweighing the outflows, hinting that accumulation is taking place. If CMF continues to rise and stays above zero, it supports further upside.

SKY’s daily Relative Strength Index (RSI) at 39.64 signals weak momentum with a bearish tilt. With the value below the neutral zone, the sellers have the edge. However, it is not yet in the oversold zone. Moreover, the Bull Bear Power (BBP) reading of 0.00292 exhibits very slight bearish dominance. With this value, the momentum is weak, not decisive. The SKY market is near equilibrium, with neither bulls nor bears in strong control.

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