In mid-June, SkyAI [SKYAI] witnessed some short-term bullish momentum. The $0.20 key support zone was defended, and a 216% rally from $0.151 to $0.479 occurred in a week.
However, the bears have regained control of the market since then. The altcoin has fallen 92% since the $0.479 high.
Researcher Freeman wrote in a post on X that the crash wasn’t the fade of an organic AI hype. Using Nansen data, whales dumping SKYAI during bounces, such as the mid-June one to $0.47, were detailed.
The post succinctly broke down the manipulation playbook.
Parabolic narrative pump → concentrated supply in few wallets → heavy distribution into retail FOMO → violent dump.
Bubblemaps had also flagged patterns it said were consistent with potential market manipulation on centralized exchanges. The pattern was something investigator ZachXBT had also been warning of, in relation to RAVE.
AMBCrypto had apprised readers of the decline in Open Interest following the mid-June rally to $0.479.
As more supply hits the market, the pressure on the token would increase. It is unclear if there is enough market conviction in SKYAI to reverse the severe drawdown.
Compared to large orders, retail influence was fading. This was another red flag for traders and investors of suspicious price action and market activity.
Assessing the current SKYAI trends
SKYAI has fallen below the $0.146 support that had been in place since April. More accurately, the current market price was 75% below this key former support level.
The token was rapidly falling toward the $0.007 lows from October 2025, but there was high trading volume on the day of writing. On the back of this volume, the price reached $0.05.
The Open Interest nearly doubled from $6.81 million on July 8 to $13.14 million in recent trading hours. The combination of the sharp correction and ongoing manipulation allegations leaves the recovery outlook uncertain.
Final Summary
- On-chain investigators have linked SKYAI’s extreme price volatility to allegations of concentrated insider-controlled supply.
- A bounce to the $0.05 level has turned into another short-term sell-off in recent hours.
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