SKYAI surged 26% after Forward Industries submitted a bid to acquire SkyAI, Inc., but the rally later cooled off as profit-taking kicked in.
This movement shows that SKYAI's price is reacting strongly to news related to the deal, while technical indicators still lean towards a bullish trend on the larger timeframe. However, the low trading volume during this recent bounce is a factor to keep an eye on.
MAIN CONTENT
SKYAI surged 26% on June 16 after news that Forward Industries [FWDI] placed a bid to acquire SkyAI, Inc.
The rally then slowed down, with the 24-hour gain down to 7.25% and trading volume decreased by 11.2%.
Technical levels indicate the larger trend remains positive, but the 0.305 USD level needs to be held.
The momentum behind SKYAI's rally
SKYAI is surging as Forward Industries [FWDI], a Nasdaq-listed company, has made a bid to acquire SkyAI, Inc. This news has triggered short-term buying pressure on the token.
After the breakout, the excitement cooled as the 24-hour gain dropped to 7.25% at the time of recording. Daily trading volume also fell by 11.2%, suggesting that the rally may have been partially driven by speculative trading.
Source: SKYAI on TradingView
The daily trend still maintains a bullish structure.
SKYAI is still maintaining a bullish structure on the daily timeframe. The 78.6% Fibonacci retracement level at 0.191 USD has been defended in June and is viewed as the launch zone for the recent rally.
At the upper targets, the 0.866 USD level is the nearest swing high that could be retested, while the 23.6% extension at 1.06 USD is also a price zone being mentioned. However, the psychological level of 1 USD could trigger strong profit-taking pressure if the price approaches it.
The MACD indicator has generated a bullish crossover, reinforcing upward momentum. However, the CMF remains below -0.05 due to low liquidity during the rally, which signals that buying pressure isn't really strong.
The short-term outlook for SKYAI depends on the 0.305 USD level.
On a shorter timeframe, SKYAI can still maintain a bullish bias if the current price zone is defended. The old supply zone of 0.36-0.40 USD is now expected to turn into a demand zone.
A retest around the recently broken level could be seen as a trend confirmation point by the market, but this scenario only holds if the price doesn't break below 0.305 USD. This is the swing low for the current timeframe.
If 0.305 USD is breached, the price may retreat to the mid-range and further down to 0.26 USD or 0.135 USD. In that case, the long-term trend could still be maintained, but corrective volatility will be more pronounced.
Key price levels to watch
SKYAI has several important technical levels to watch in the short and medium term. These levels reflect both support, resistance, and price targets mentioned in the current trend.
Current Price Levels Significance 0.191 USD 78.6% Fibonacci retracement Zone defended in June 0.36-0.40 USD Old supply zone May turn into demand zone 0.305 USD Short-term support Losing this level will weaken the bullish scenario 0.866 USD Nearest swing high Price target that may be retested 1.06 USD 23.6% extension Higher target zone, but may face profit-taking 0.26 USD Mid-range of lower bounds Adjustment level if price weakens significantly 0.135 USD Lower bound Deeper retracement level if short-term trend fails
Summary
SKYAI is benefiting from specific corporate news, while the larger trend is still leaning bullish. However, low trading volume and the 0.305 USD level are two factors that need close monitoring.
Source: https://tintucbitcoin.com/skyai-len-1-usd-sau-mua-lai/
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