Sky [$SKY] rallied 11% over the past day, extending a stretch of steady performance for the protocol.
At press time, usage across the protocol ran high, generating $987,000 in fees over the past 24 hours, while volume peaked at $13.49 million within the same window.
Notably, token volume has also trended higher, rising 5.78% to $23.25 million. Together, the price and volume gains point to strengthening performance, and several signals suggest $SKY could extend the move.
Can $SKY rally toward $0.67?
$SKY could climb toward roughly $0.067, a level the token last touched in early June. The outlook rests on a recent chart formation, with $SKY carving out an inverse head-and-shoulders pattern.
An inverse head-and-shoulders typically forms ahead of a stronger move to the upside. The structure is still developing, but a clean break above the $0.050 neckline would open the door to a much broader rally.
Should bullish momentum hold, $SKY would post a 13.79% surge to its June target, a move that sits within the near term.
Over the short term, price could consolidate midway before reaching that final target. Getting there would see $SKY recover every loss it has accumulated since June.
Momentum indicators strengthen $SKY’s case for more upside
Numerous momentum indicators have converged, suggesting $SKY could keep extending its gains.
At the time of writing, the Money Flow Index, which tracks capital moving in and out of an asset, showed a growing inflow into the market.
The MFI has ticked upward and crossed the 50 mark. A reading above 50 signals that traders have entered a bullish phase, raising the odds that more capital flows in over the next few sessions.
The Moving Average Convergence Divergence (MACD) has regained strength, printing a green histogram bar after several days of fading momentum.
The key test comes as $SKY approaches the neckline, where selling pressure typically intensifies. For the bullish case to hold, the MACD would need to cross into positive territory while the MFI stays below 80, a combination that would keep the rally sustainable.
Holder income adds incentive to lock up tokens
Traders now have a stronger incentive to keep their assets locked in the protocol’s TVL, driven by the income flowing to $SKY holders. According to DeFiLlama, that income has reached $301,000 since July began, about 30% of the $1.1 million distributed in June.
The dynamic feeds on itself, as a rising $SKY price makes holders more likely to lock their tokens, positioning to earn rewards while benefiting from the higher prices.
Final Summary
- $SKY climbed 11% in a day, with rising fees and trading volume signalling renewed demand for the token.
- Growing capital inflows and steady holder rewards give traders reason to expect a further move toward $0.06.