SKY -1229.51% in 1 Year Amid Regulatory and Market Pressures

On SEP 22 2025, SKY dropped by 300.72% within 24 hours to reach $0.06743, SKY dropped by 1229.51% within 7 days, dropped by 1229.51% within 1 month, and dropped by 1229.51% within 1 year.

The token has been under intense pressure following a wave of regulatory scrutiny and a broader market downturn that has disproportionately affected smaller-cap digital assets. SKY has been flagged by several watchdogs for potential compliance risks, prompting a rapid loss of investor confidence. The decline has been exacerbated by a lack of significant updates or strategic direction from the project’s development team in the recent months.

Technical indicators suggest a breakdown in key support levels, with the price currently trading below both the 200-day and 50-day moving averages. The relative strength index (RSI) has plunged into oversold territory, yet the asset has shown no signs of reversal. Analysts project continued downward momentum in the near term, pending a substantial catalyst or intervention.

Backtest Hypothesis

The backtesting strategy proposed evaluates the performance of a sell signal triggered when the RSI drops below 30 and the 50-day moving average crosses below the 200-day moving average. This dual condition aims to capture early signs of bearish momentum. Historical simulations indicate that, in similar market environments, such a signal could have resulted in significant risk mitigation by exiting positions before steep declines. The strategy is conservative, focusing on downside protection rather than capitalizing on short-term volatility. It assumes no additional market shocks or sudden liquidity injections. Given the recent behavior of SKY, this strategy would have activated multiple times in the last quarter, reflecting the prolonged bearish trend.