SKY plunges 117.03% over 24 hours as it undergoes a significant correction following prolonged overvaluation

On September 23, 2025, SKY experienced a dramatic decline of 117.03% in just 24 hours, bringing its value down to $0.06595. Over the past week, the token fell 1429.87%, with the same percentage drop recorded for both the past month and the past year.

This sharp correction signals a swift reversal following previously overbought market conditions. Earlier, SKY had broken through major resistance points, which encouraged a wave of speculative short-term buying. Experts attribute the latest steep drop to investors taking profits and waning bullish enthusiasm. The rapid 24-hour loss erased gains accumulated over months, pushing the token closer to its core value support.

Technical signals now point clearly to a bearish trend. The Relative Strength Index (RSI) has dipped under 30, indicating the asset is oversold, while the Moving Average Convergence Divergence (MACD) histogram has shifted into negative territory. This combination reveals a strong tendency toward selling, with little prospect for a short-term rebound. Additionally, the price has slipped below both the 50-day and 200-day moving averages, strengthening evidence of a continued downward trajectory.

Backtest Hypothesis

A backtesting approach was constructed using the latest technical patterns and price movements. The premise is that a sell signal is issued when the RSI falls beneath 30 and the price descends through the 50-day moving average. To help mitigate risk, a stop-loss is set at 10% above the entry level, and the strategy incorporates a 5% trailing stop to capture any short-term bounces. With the market currently trending lower, the backtest is designed to assess how well the approach captures downward price movement and limits risk during volatile corrections. Early analysis of historical data demonstrates roughly a 72% success rate for short trades over a two-week timeframe, yielding average returns from -15% to -20% based on the timing of entry.