Sky (SKY) Drops 4.22%... Tests $0.0720 Support Line Amid Bitcoin's Plunge

Sky(SKY) ©CoinReaders

Sky (SKY) fell more than 4% in a single day, dropping to the $0.0725 level. As Bitcoin failed to rebound near $85,000 and large-scale leverage liquidations occurred, overall market risk aversion sentiment increased selling pressure. Warnings are emerging in the market that if Bitcoin fails to hold the $80,000 support line, altcoins linked to Bitcoin, like Sky, could see further declines.

According to CoinMarketCap, a cryptocurrency market data aggregator, on October 23 (Korean time), Sky was trading at $0.0725, down 4.22% over the past 24 hours. Its market capitalization rank is 50th. On the domestic exchange Upbit, it traded at 97 KRW (24 hours -0.51%). According to CoinMarketCap AI analysis, Bitcoin fell by 3.89% during the same period, and the total cryptocurrency market capitalization also decreased by 3.66%.

Bitcoin's sharp decline and the expansion of leverage liquidations are cited as the biggest reasons for the drop. Bitcoin attempted to rebound to around $85,000 but failed to overcome this level and sharply declined. CoinDesk reported that over $430 million in leveraged positions were liquidated during this process. Sky is analyzed to have moved in conjunction with this trend, reacting sensitively to market fluctuations.

Risk asset aversion due to worsening macroeconomic conditions also pressured the price. It is explained that investors reduced their exposure to risky assets as U.S. tech stock earnings were mixed and Treasury yields remained high. CoinMarketCap AI analysis stated that no clear individual factors such as Sky's own upgrades or ecosystem events were identified. The 0.54% price discount in the domestic market reported by TokenPost is also analyzed to be merely a liquidity factor and not a catalyst for price changes.

In the short term, whether the $0.0720 support holds is a key variable. CoinMarketCap AI predicted that if Bitcoin defends the $80,000 support line, Sky could trade sideways around $0.0750. Conversely, it pointed out that if Bitcoin gives up this line, Sky also risks falling to $0.0720. Since the current price of $0.0725 is already below $0.0750, Sky needs to recover $0.0750 to turn into an upward trend.

Over the next 24-48 hours, whether Bitcoin defends the $80,000 support line is expected to determine Sky's short-term direction. The U.S. Federal Reserve's (Fed) interest rate decision scheduled for October 28 is also a key event. If a hawkish stance is confirmed, it could put additional pressure on the cryptocurrency market, while a neutral hold could lead to limited fluctuations. CoinMarketCap AI analyzed that an increase in trading volume during a rebound is important, and consistently low trading volume signals weak conviction for an uptrend. The market outlook is assessed as neutral to bearish until Bitcoin confirms a bottom.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*