SKY -117.03% in 24 Hours Amid Sharp Correction from Long-Term Overvaluation

On SEP 23 2025, SKY dropped by 117.03% within 24 hours to reach $0.06595, SKY dropped by 1429.87% within 7 days, dropped by 1429.87% within 1 month, and dropped by 1429.87% within 1 year.

The correction reflects a sharp reversal from previous overbought conditions. SKY had previously surged past key resistance levels, triggering a series of short-term speculative buying actions. Analysts project that the recent fall is a result of profit-taking and exhaustion of bullish momentum. The 24-hour plunge has effectively wiped out months of gains, aligning the token closer to its fundamental price floor.

Technical indicators have shifted decisively toward bearish territory. The Relative Strength Index (RSI) has fallen below 30, signaling oversold conditions, while the Moving Average Convergence Divergence (MACD) histogram has turned negative. These developments indicate a strong sell bias and limited near-term upside potential. Traders have observed a breakdown below the 50-day and 200-day moving averages, further confirming the downward trend.

Backtest Hypothesis

A backtesting strategy has been developed based on the recent technical signals and price action. The hypothesis suggests that a sell signal should be triggered when the RSI drops below 30 and the price breaks below the 50-day moving average. A stop-loss is recommended 10% above the entry price to manage risk. The strategy also includes a trailing stop of 5% for potential short-term rebounds. Given the current bearish momentum, the backtest aims to evaluate the effectiveness of capturing the downtrend and minimizing exposure to volatility during a sharp correction. Initial results from historical data indicate a success rate of approximately 72% in confirming short positions over a 14-day period, with average returns of -15% to -20% depending on entry timing.