- Sky token price dropped over 5% as altcoins struggled.
- The token could fall further amid broader market weakness.
- Anchorage Digital has reportedly transferred over 69 million SKY tokens.
Sky (SKY), the governance asset of the decentralized Sky Protocol (formerly MakerDAO), has dropped by over 5% in the past 24 hours as major cryptocurrencies face downward pressure.
After renewed uptrends in early 2026, Bitcoin has retreated to support at $90,000, Ethereum to $3,000 and XRP to around $2.15.
Increased trading volume as the token faces significant downward pressure suggests there could be further downside movement.
SKY price falls amid large token transfer
SKYs price declining nearly 6% to trade near $0.056 is a drop that aligns with a broader altcoin market weakness observed on Friday.
Sky price chart by TradingView
The tokens struggles come as profit-taking adds to risk-off sentiment.
For Sky, sellers have been on top since prices fell from highs of $0.096 in July 2025.
Bears even tested the support levels around $0.041 in November.
Recent gains saw buyers top $0.068, but things have looked tough on the upside across the cryptocurrency market, and SKY is following a similar trajectory.
On Jan. 9, the price decline happened as onchain data showed that Anchorage Digital, a prominent institutional crypto custodian and federally chartered bank, had moved over 69 million SKY tokens.
This significant on-chain transfer is likely a repositioning for custody services, institutional allocation, or other strategic purposes.
However, such large transfers often trigger heightened selling activity.
What next for SKY price？
Technical indicators on the daily chart point to continued downside risk for SKY in the near term.
The Relative Strength Index (RSI) is hovering in the mid-40s, suggesting weakening momentum and leaving room for a further slide toward oversold conditions.
At the same time, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line below the signal line and a negative histogram.
Despite the recent decline of roughly 9% over the past week, some investors remain constructive on the tokens longer-term outlook.
Supportive factors cited include ongoing token buybacks funded by protocol revenue and signs of growing real-world usage.
Data also shows that annualised SKY repurchases have risen sharply alongside a jump in revenue, placing the project among the top-ranked protocols by buyback activity.
While Hyperliquid leads the group, Sky ranks second, ahead of names such as Pump.fun, TRON and Solana.
Here are the Top 10 leading in annualized revenue and their market cap revenue ratio.
1. Hyperliquid $HYPE – $514M (12.1x)
2. Sky Ecosystem $SKY – $371M (3.6x)
3. https://t.co/FCQRXgJqew $PUMP – $368M (3.5x)
4. Tron $TRON – $339M (82.1x)
5. Solana $SOL – $282M (280.7x)
6.… pic.twitter.com/pLXz4LAloy
— Coinage x DAIC (@coinage_x_daic) January 9, 2026
The positive fundamentals may provide a boost that could see bulls counter macro-driven headwinds.
If bulls take control, bullish price targets include $0.080 and $0.10. Conversely, bears might eye $0.050 and $0.037 lows.