The price of the Sky (SKY) token has recently experienced a decline of over 5%, reflecting a general downturn affecting altcoins in the cryptocurrency market. This situation could be exacerbated by a broader market weakness, as Anchorage Digital reportedly transferred more than 69 million SKY tokens.
Sky Token Faces Price Drop Amid Market Pressures
The price of SKY has fallen nearly 6%, trading around $0.056 as part of a wider trend of depreciation observed across the altcoin market. Following an initial bullish trend early in 2026, major cryptocurrencies like Bitcoin have retreated to support levels of $90,000, Ethereum down to $3,000, and XRP around $2.15.
The increased trading volume during this price decline suggests a potential for further downward movement. The prevailing sentiment indicates that profit-taking is driving increased risk aversion among investors.
Since the notable price drop to $0.096 in July 2025, sellers have maintained a dominant presence in the market. Recent support levels around $0.041 were tested in November. Although buyers managed to push prices above $0.068, the overall conditions appear challenging for a significant rebound in the cryptocurrency market.
On January 9, the price decrease coincided with blockchain data revealing that Anchorage Digital, a prominent institutional cryptocurrency custodian and federally chartered bank, had relocated over 69 million SKY tokens. This significant transfer is likely strategic, aimed at safeguarding assets or optimizing institutional allocations. However, such large transactions typically ignite increased selling activity.
Examining SKY’s Future Price Potential
Technical indicators on the daily chart reflect a persistent downward risk for SKY in the short term. The Relative Strength Index (RSI) currently hovers around the mid-40s, signifying weakened momentum and suggesting a possible slide into oversold conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line below the signal line and indicative of negative histogram values.
Despite the recent weekly drop of approximately 9%, some investors maintain an optimistic outlook on the long-term potential of the token. Factors supporting this positivity include ongoing buybacks financed by protocol revenues and indications of increasing real-world usage.
Sky has seen a significant uptick in annualized buybacks, corresponding with rising revenue figures, positioning the project among the top-tier protocols based on buyback activity. Leading the pack is Hyperliquid, with Sky ranking second, surpassing 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. $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 underlying fundamentals may provide a boost, potentially enabling bullish traders to navigate against prevailing macroeconomic headwinds. Should the bulls regain control, price targets could rise to $0.080 and $0.10, while bearish traders might seek targets around $0.050 and $0.037.
