SKY Faces a 393.69% Decline Over One Year Due to Regulatory Challenges and Market Stress

On September 19, 2025, SKY plummeted by 216.69% within a single day, falling to $0.07581. Over the past week, month, and year, SKY has experienced a decline of 131.41% during each respective period.

The dramatic drop in SKY’s price is mainly due to heightened regulatory intervention and a generally pessimistic outlook across the cryptocurrency market. In recent months, authorities have intensified their efforts, launching multiple enforcement actions against DeFi projects and tokens that lack proper regulatory compliance. As SKY has traditionally operated without a centralized framework, it has drawn increased attention from regulators. This scrutiny has triggered heavier selling activity, prompting both institutional and retail investors to reconsider their holdings in non-compliant digital assets.

From a technical perspective, SKY’s price has slipped beneath important support zones that previously helped stabilize its value. The RSI has dropped into oversold levels, hinting at a possible recovery, but the MACD continues to show negative momentum, underscoring ongoing bearish trends. Market experts believe that unless there is a notable change in regulations or broader market sentiment, SKY may continue trading within its current range or decline further.

Backtest Hypothesis

A backtesting

is being considered to evaluate trading opportunities based on SKY’s latest price trends. This hypothesis adopts a trend-following methodology, leveraging moving averages and RSI. According to the strategy, short trades are initiated when the 50-day moving average dips below the 200-day moving average and the RSI stays under 30, signaling oversold conditions. Conversely, long trades are only entered if the 50-day average rises above the 200-day average, the RSI surpasses 70, and the price breaks through a set resistance barrier. Risk is managed by placing stop-loss and take-profit orders at major Fibonacci retracement points.

The backtest will cover the past year, taking into account SKY’s steep losses and consolidation phases. The performance of the strategy will be measured by its win ratio, risk-adjusted returns, and drawdowns. Given the prevailing downtrend and absence of a clear trigger for recovery, the analysis favors a strategy with a bias toward short positions to better capture near-term price fluctuations.