Sky [SKY], the native token of the on-chain decentralized protocol, posted a double-digit gain over the past day as investor sentiment continues to strengthen.
Capital from the spot side of the market has gradually pulled back, yet the broader sentiment on the chart shows that momentum continues to build.
SKY rallies on perpetual market momentum
The major push for SKY came primarily from its perpetual market, where investors anticipate further upside on the chart.
Over the past day, SKY’s market capitalization surged roughly 10%, at press time, adding about $178 million and pushing the asset’s valuation to around $1.78 billion.
Support from the perpetual market followed a rise in trading capital, which climbed to $27 million, marking a 12% increase during the same period. At the same time, the Taker Buy/Sell Ratio has remained above 1.
When the Taker Buy/Sell Ratio moves above 1, it confirms that buying volume in the perpetual market exceeds selling volume within a specific time frame. In this case, the data reflects activity over the past 24 hours.
The inflow of capital and the surge in buying volume were not the only factors driving the move. According to the latest readings, the new capital and trading activity have also translated into more long contracts in the market, with traders increasingly opening long positions.
This trend appears in the positive Open Interest Weighted Funding Rate. For context, roughly 1.4 million contracts have remained open on SKY perpetual markets over the past day as the market rebounds.
Market structure shows sustained strength
The market structure continues to print a clearly bullish candle pattern, although the move has drawn less attention since SKY’s gains have not been as explosive as those recorded by some other tokens.
On the one-week timeframe, the broader market liquidation that began during the week ending on the 6th of October lasted just six weeks, or roughly 47 days, for SKY. The correction ended during the week, closing on the 17th of November.
Since then, SKY has spent the next 15 weeks, roughly 103 days, forming a sequence of higher highs and higher lows, a decisively bullish structure.
During this period alone, about 5.1 billion SKY in trading volume has changed hands.
Based on the chart structure, SKY could attempt another rebound. With limited resistance overhead, the asset may push beyond its previous high of $0.095 and move toward $0.10, which would represent a potential 30% gain.
The Money Flow Index also confirms continued capital inflows that have supported the recent price advance. At press time, the MFI was holding above 50, suggesting that market momentum remains on the bullish side.
Spot traders add selling pressure
Spot traders, however, appear to have shifted to the bearish side of the market as they begin selling to lock in profits. The move likely reflects profit-taking after SKY’s 15-week bullish run.
The sell-off began around the 24th of February and has continued since then. During this period, total spot outflows have reached roughly $5.8 million, marking a notable withdrawal of liquidity from the market.
For now, the scale of this outflow remains relatively small compared with the $178 million added to SKY’s market capitalization over the past day.
Unless the spot sell-off grows significantly, especially during a period of declining prices, it is unlikely to pose an immediate threat to SKY’s broader upward trajectory.
Final Summary
- SKY gains momentum in the perpetual market, adding to its recent advance.
- Spot sell-off emerges but does not yet alter the broader price trajectory.
