Sky [SKY] Assets have surged higher on the entire market. In the last day, the asset has increased by over 12%. Its technical chart seemed to indicate that the asset could continue to rise.
Although on-chain activities mapped a clear course at the time of press, chart patterns indicated that cryptos could go even further.
Does the rate of funding overheat?
Data on funding rates was the most obvious indicator that the rally had continued. The funding rates show which direction the capital is moving in the permanent market and if long or short positions dominate.
As of the date this was written, the funding rates were flashing positively while maintaining a relatively high level. The setup was still favorable to the price, indicating that the bullish position had not become excessive.
Open Interest was on the rise, and this made it appear as if the rally would continue. At the time this article was written, open interest had risen by 14,25% and reached $30.24 millions.
Inflows of $4.3 million were recorded in the past 24 hour period. If the funding rate is positive, it may indicate that investors are preparing for more gains and still anticipate them.
At press time, the funding rate was just 0.0054% – A moderately bullish reading that may be enough to keep the outlook intact.
Price and volume rise in tandem
Volume has risen along with the price. This combination suggests that the altcoin is gaining momentum.
As of the time we went to press, volume had increased 106%. It was $31 millions. Looking at the permanent market revealed that the same sentiment was present in this segment.
Long-to-short market ratios also rose, hitting a new high of approximately 1.27. The majority of accounts were therefore bullish.
The ratio of long to short measures if bulls or a bears are leading a particular market. The reading of a ratio above 1 indicates more purchasing volume while the reading of a ratio below 1 suggests more selling volume.
You can also find out more about the following: SKY’s caseThe trend of the ratio continues to be higher. This means more accounts are moving in the opposite direction, as the altcoin maintains its upward momentum.
Does SKY have its eyes on the next resistance?
SKY showed signs of strength on its charts. The altcoin broke through a descending trendline that it had been following for several weeks.
After that breakout, price broke through another horizontal key resistance level. It then continued to move higher. The price has to be comfortably closed above the level in order for a bullish forecast to be confirmed.
If the buying pressure continues, two levels of key interest are likely to be in play. These boxes can be seen on the graph. If they were removed, the outlook for prices would be significantly altered.
At press time, the Accumulation/Distribution indicator—which tracks whether buying or selling dominates—showed the former in control, implying SKY could force a further upswing.
Final summary
- SKY climbed 20% within a day. Money flowing in the market suggests that traders could bet on the rally continuing.
- The real power behind this move was evident in the volume of sales and the growing focus on buyers.
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Source: ambcrypto.com
