Sky Crypto Surges 11% in 24 Hours, Bullish Momentum Continues

Sky crypto, which was rebranded from Maker [MKR] DAO last August, has seen a significant surge in value, rising by 11% in the past 24 hours. This altcoin, designed to offer a simpler user experience, has been on a strong upward trajectory since hitting a low on May 31, with a 24.8% rally to $0.0788. The short-term momentum for Sky crypto is intensely overbought, indicating a potential for a minor retracement in the near future.

The longer-term outlook for Sky crypto is more cautious. While the 1-day market structure is bullish, there are two key retracement levels that need to be breached for the bulls to maintain their momentum. The first of these levels is at $0.081, which poses a challenge to the current uptrend. The second level is at $0.086, a key resistance point identified by Fibonacci levels. Breaking above this level would indicate that Sky crypto is trending higher on the higher timeframes, rather than simply retracing its bearish impulse.

On the 1-day chart, Sky crypto experienced a sharp bearish impulse move that began in December, falling from $0.1 to $0.036 during Bitcoin’s retracement from $106k to $76k. However, since February, Sky crypto has shown strong recovery, making a series of higher highs and higher lows. At press time, it was above the 61.8% level at $0.076, indicating a bullish market structure.

The 4-hour chart reveals firm buying pressure in recent days, with another set of Fibonacci retracement and extension levels plotted based on the rally from $0.06 to $0.081 in early May. The hike in OBV (On-Balance Volume) and the +0.09 reading on the CMF (Chaikin Money Flow) reinforce the idea of greater demand. The RSI (Relative Strength Index) shows that momentum is intensely bullish, suggesting that a minor retracement in the next day or two could retest the $0.074 support zone before resuming the bullish impetus.

Investors in Sky crypto should be aware of the potential for a minor retracement in the near future, but the overall outlook remains bullish. Breaking above the key resistance at $0.086 would be a significant milestone for the altcoin, indicating a trend higher on the higher timeframes. However, investors should remain cautious and monitor the market closely for any signs of a change in momentum.