Sky token tumbles over 5% as altcoin weakness deepens.

In a troubling trend for cryptocurrency investors, the price of the Sky (SKY) token has fallen by over 5% in the last 24 hours, as major altcoins struggle under market pressure. Recent data suggests this decline could continue, especially following a significant transfer of tokens.

SKY Token Price Decline Tied to Major Token Transfer

The price of SKY dropped nearly 6%, trading at around $0.056. This decline is reflective of a broader weakness seen across the altcoin market on Friday.

These challenges come amidst profit-taking that has heightened risk sentiment. Sellers have maintained momentum since the price drop from $0.096 in July 2025, even testing support levels near $0.041 in November.

Despite recent upticks allowing buyers to push prices above $0.068, the cryptocurrency market’s overall challenging environment continues to impact SKY adversely.

On January 9, the token price fell further, coinciding with reports from on-chain data indicating that Anchorage Digital, an institutional cryptocurrency custodian and federally chartered bank, moved over 69 million SKY tokens. Such substantial transfers often lead to increased selling activity as they may signal a change in asset allocation for custody or strategic purposes.

What’s Next for SKY’s Price?

Technical indicators suggest a continued risk of short-term declines for SKY. The Relative Strength Index (RSI) hovers around the mid-40s, indicating weakened momentum and opening the possibility for further slides into oversold conditions. Concurrently, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line below the signal line and a negative histogram.

Despite last week’s 9% decline, some investors remain optimistic about the token’s long-term prospects. Supportive factors include ongoing token buybacks funded by protocol revenues and signs of increasing real-world usage.

Data indicates that annualized buybacks of SKY have surged alongside revenue growth, positioning the project among the top protocols in terms of buyback activity. Currently, Sky ranks second behind Hyperliquid, surpassing well-known 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.fun $PUMP – $368M (3.5x)
4. Tron $TRON – $339M (82.1x)
5. Solana $SOL – $282M (280.7x)

— Coinage x DAIC (@coinage_x_daic) January 9, 2026

Positive fundamentals could provide a boost, enabling bullish sentiment to counter macro headwinds. If bulls gain control, potential upward price targets include $0.080 and $0.10, while bears may target lows of $0.050 and $0.037.