SKYAI (SKYAI) has surrendered nearly half of a 4,200% advance, breaking a key demand zone and leaving the chart open to a further 14% slide.
SKYAI Breakdown Pressures Buyers
The AI-themed token rallied roughly 4,200% between Mar. 30 and May 4. That stretch ranked among the strongest altcoin advances of the current cycle.
The token has since erased close to 48% of those gains.
A 23% daily drop pushed price through a demand zone that traders had expected to absorb supply.
The breakdown leaves the next major demand area roughly 14% below current levels. Chart history shows that lower zone previously wicked and rebounded, which kept dip buyers engaged through earlier pullbacks.
SKYAI's parabolic move was ignited by an April 30 spot listing on Bitget and final testing of the project's MCP Hub, a routing layer for AI agents. The token hit an all-time high of $0.8569 on May 6.
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Money Flow Signals Stay Mixed
Buying activity has not collapsed despite the selloff. The MACD has yet to confirm the breakdown, while the Money Flow Index slipped from 91 to 73, a reading that still sits in territory analysts associate with active inflows rather than capitulation.
Chaikin Money Flow remained positive at press time, indicating buy-side volume continues to outweigh sell pressure. That detail suggests market structure has not yet turned outright bearish.
CoinGlass liquidation data reframes the drop in a different light. Multiple liquidity clusters sit above the current price, the kind of zones price often gravitates toward as markets seek leveraged stops.
Under that lens, the breakdown may have flushed leveraged longs before another upward attempt. Stop hunts of this type frequently precede continuations of a broader trend.
SKYAI's Wild Spring Run
The drawdown caps a turbulent few weeks for the token. Binance perpetual traders had positioned bearishly around the May 6 peak, with the long-to-short ratio falling to 0.43 as open interest declined and funding rates drifted toward zero.
Whale concentration concerns also surfaced in mid-May. Blockchain analytics firm Bubblemaps flagged 36 freshly created wallets that moved roughly 25% of the token's supply onto Gate.io shortly before the April 30 Bitget listing. The findings have raised questions about coordinated activity behind the parabolic move, even as on-chain investigator ZachXBT has warned for months about similar setups across other recent listings.
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