Skycoin Price Analysis: Why 4,640 Sats Might be a Local Bottom for SKY

In summary:

  • Skycoin (SKY) joins a list of altcoins that were negatively affected by the Bitcoin flash crash of 12 – 13th March 2020. 
  • SKY/BTC managed to dip to as low as 4,640 Satoshi. 
  • This might be a local bottom for the coin as it has seen far worse when it dropped to 4,400 Satoshis in mid-January. 

As we celebrate April Fools day with a bit of humor from Coinmarketcap for introducing the concept of Tissue Paper Token (TPT), we are reminded of other alt-coins that made headlines in the past and have since taken a back seat due to the current market conditions. One such coin is Skycoin (SKY) which is widely known in the crypto-verse thanks to the team’s past association with the famous internet security expert, John McAfee.

Skycoin (SKY) Price Analysis

In this case, we shall be analyzing the coin’s price action paired with Bitcoin on our favorite time frame of 6-hours.

Looking at the chart, we see that the price of SKY denominated in BTC dropped considerably hard to around 4,640 Satoshi around 13th March. Going further back in time, we see that the same SKY had dropped to around 4,400 Sats in mid-January thus giving the impression of a double bottom with the earlier mentioned price of 4,640. We can confirm this by the ‘W’ shape formed by the chart using these two reference points.

Additionally, there is a symmetrical wedge forming. The 50 (white) moving average is about to cross the 200 (green) moving average. This event will be classified as a golden cross thus providing bullish momentum for SKY/BTC.

In this case, the coin has the two upper resistances of 6,631 Satoshi and 7,716 Satoshi. Judging by the low volume of the trading pair and the price movement seen through quick wicks, it might be wise to place take profit levels in case the bullish momentum is not maintained for too long. Additionally, appropriate stop losses should be placed around the indicated support levels of 4,640 and 4,400 Sats.

More On Skycoin (SKY)

Skycoin is a blockchain ecosystem that solves the core inefficiencies of PoW and PoS. Its revolutionary consensus protocol uses decentralized mesh internet known as Skywire, which rewards users for providing bandwidth. Its revolutionary concept is what led John McAfee to endorse the project back in November 2018.

However, the team at Skycoin and John McAfee, soon parted ways less than six months later after Mr. McAfee tweeted about copulating with whales. McAfee’s tweet that ended the partnership can be found below.

(Feature image courtesy of M. B. M. on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Gazette or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.


Companies Mentioned

CoinMarketCap
CoinMarketCap

CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.

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John P. Njui Author

Crypto Enthusiast. Terrible dancer. Former DJ. Amateur Marathoner. Electrical Engineer. Kool kat.

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