- Sky crypto appeared poised to trend higher in the upcoming weeks, although it encountered a significant resistance at $0.086
- Altcoin’s short-term momentum was highly overbought at the time of writing
SKY crypto, rebranded from Maker [MKR] DAO last August, was developed to provide a more user-friendly experience. The rebranding marked a significant milestone in MakerDAO’s “Endgame” Overhaul. The existing MKR governance has continued to exist, with each being convertible to 24,000 SKY tokens.
This token has shown significant gains over the past few days, rising by 24.8% from the low of May 31 to reach $0.0788. Technical indicators suggest a bullish short-term bias.
However, investors are advised to exercise caution due to the longer-term outlook. While the 1-day market structure is bullish, there are two retracement levels that need to be surpassed.
SKY faces challenges with local highs but maintains a three-month uptrend
Source: SKY/USD on TradingView
The 1-day chart for SKY shows a sharp bearish impulse that began in December, starting at $0.1 and dropping to $0.036 during Bitcoin’s retracement from $106k to $76k. Since February, SKY has shown strong recovery. Fibonacci levels indicate that $0.086 is a crucial resistance level for the bulls to overcome, signaling a potential uptrend on higher timeframes.
The market structure has been bullish since the rally to $0.073 in February, with SKY forming higher highs and higher lows. Currently, it is above the 61.8% level at $0.076, with the $0.081 local high likely to present a challenge.
Source: SKY/USD on TradingView
The 4-hour chart indicates strong buying pressure in recent days, with Fibonacci retracement and extension levels based on the rally from $0.06 to $0.081 in early May. The OBV hike and CMF reading of +0.09 suggest increased demand, while the RSI indicates intensely bullish momentum, possibly leading to a minor retracement before continuing the uptrend.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other forms of advice