SKYAI loses its recovery gains: Is a deeper correction now underway?

SKYAI's recovery attempt from its rebound on the 6th of June lost strength as sellers regained control across the market.  Earlier, the token had climbed 15% from the $0.147 support zone and approached $0.205 after weeks of sustained weakness.   However, that narrative weakened considerably over the last 24 hours. SKYAI fell 27.5% to $0.1928, while its market capitalization dropped to $192.87 million.  Trading activity also cooled sharply, with volume declining 25.72% to roughly $53 million. As a result, the recovery structure that emerged last week lost credibility, and market participants shifted their focus back toward downside risk. Traders rush for the exit Derivatives data showed a broad reduction in speculative exposure as traders rapidly stepped away from leveraged positions.  Open Interest dropped 20.38% to $83.7 million, highlighting a significant decline in participation across the futures market.  Such a sharp contraction usually reflects position closures rather than fresh capital entering the market.  The decline also aligned with SKYAI’s steep price correction, suggesting that many traders abandoned bullish bets after the recent recovery failed to extend higher.  In addition, the derivatives market reflected caution as participants reassessed risk following the token’s breakdown. Unless new demand returns, futures activity would likely remain subdued in the sessions ahead. Has SKYAI lost its bullish footing? The technical structure weakened considerably after SKYAI failed to reclaim the major $0.35 resistance zone highlighted on the daily chart.  The rejection near that level preserved the broader downtrend and pushed the token back toward the $0.152 support area. Although price continued trading above that support at press time, buyers no longer controlled the structure that emerged during the June rebound. RSI also reflected deteriorating conditions. The indicator fell to 44.63 after previously approaching neutral territory during the recovery phase.  The reading showed that buying strength had faded without entering deeply oversold conditions. Therefore, sellers still retained room to apply additional pressure.  If SKYAI loses the $0.152 support zone, the next major area of interest would sit closer to the $0.06 historical support level. Liquidity pockets hint at rebound targets The liquidation heatmap revealed several notable liquidity concentrations above the current market price.  The most significant cluster appeared between $0.21 and $0.23, where large amounts of leveraged positions remained vulnerable.  Price often gravitates toward such areas because market makers and liquidations can attract short-term volatility.  Additional liquidity zones also existed around $0.24 and extended toward $0.27, creating multiple upside targets if buyers regain control.  However, the heatmap did not guarantee a reversal. Instead, it highlighted where price could move if a relief rally develops.  Final Summary SKYAI lost its recovery structure as sellers reclaimed control across the market. Falling Open Interest showed traders reduced exposure during the sharp correction.