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.
Source: TradingView
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.
Source: TradingView
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.
