SKY extended its September recovery on Tuesday, gaining 8.39%to trade near the $0.0854 price level at the time of this writing. It briefly touched $0.0875, which is its highest price in many months.
The move took SKY beyond two important barriers. But after the climb it saw, holding those new levels it just reached is more important than reaching another short-lived high.
SKY clears another price ceiling
SKY started trading near the $0.0787price level before buyers pushed it above $0.084. Since it broke beyond the 0.078 price level, that level has been its obstacle.
There was also an increase in trading activity during the move. Around 14.18 million SKYwas traded, meaning the advance saw a lot of participation and did not rely on a few trades.
The current rally continued a recovery that started around the $0.056price level earlier this month. Since then, SKY has seen more than 50%in gains and is trading above its average prices from recent weeks and months.
Source: TradingView
For buyers, keeping it above $0.084is the challenge. But if they are able to do so, $0.09becomes the next target. If it sees a stronger advance, the $0.10level could come into view.
SKY has climbed quickly, and this has allowed some holders to take profits. A fall below $0.084could take it back toward $0.078, which may now serve as its first major support level.
Sky developments support the wider picture
The rally follows some developments from the Sky ecosystem, but it does not mean that any of them was responsible for the recent price increase.
Earlier in September, Sky governance approved the destruction of about 2.86 million SKY. This destruction removed them from circulation and reduced the available supply.
More recently, Sky said that Galaxy had added $100 million of sUSDSto its corporate treasury. It also approved the stablecoin as collateral across its institutional trading business.
Skys website currently reports that it has $11.48 billionin stablecoin supply and $14.15 billion in total collateral. Despite all these, SKY must still prove that its latest breakout can survive profit-taking.