The artificial intelligence token SKYAI plunged 36.2% to its monthly floor on June 28, 2026, amid a wave of intense selling activity. Despite the sharp decline in valuation, market engagement remained high as daily trading volume surged by 70.85% to reach $43.16 million. This increased activity suggests that while prices are falling, market participants are actively repositioning rather than exiting the asset entirely.
This steep correction reduced the market capitalization for SkyAI (SKYAI) to $238.26 million. The price action follows earlier market interest surrounding a June 15 announcement from SkyAI, Inc. (NASDAQ: SKYA), which confirmed it had received an unsolicited, non-binding proposal from Forward Industries, Inc. for a potential all-stock business combination. As of June 28, the token’s price was recorded at $0.3264.
Technical pressure and support defending the SKYAI price
The recent volatility marks a significant shift for SKYAI, which had previously found support near the $0.328 mark following a sharp decline from its June peak of $0.4792. The current surge in trading volume alongside falling prices indicates aggressive selling pressure across both spot and derivatives markets. This environment has left the token under pressure as traders search for signs of a new bottom.
Technical indicators sourced from on-chain data emphasize current bearish control. The Moving Average Convergence Divergence (MACD) remains below the zero line with a histogram printing negative bars, while the Parabolic SAR is positioned above the price at $0.436. These readings often coincide with periods of crypto market liquidation analysis where existing trends favor sellers over buyers.
Despite the downward momentum, buyers have repeatedly defended a demand zone near $0.168. This area has prevented an immediate breakdown further toward the 7-day all-time low of $0.2503. If buyers can maintain this defense, some analysts suggest a potential recovery attempt toward the $0.335 resistance level could materialize.
Derivatives leverage cools as open interest declines
Data from the derivatives market shows a sharp reduction in speculative activity. Open Interest (OI) for SKYAI declined by 36.65% to approximately $69.66 million. This suggests that instead of opening new bearish positions, many traders opted to close leveraged positions or were forced out through liquidations.
This contraction has effectively removed much of the speculative “heat” that previously amplified price swings. A lighter derivatives market can sometimes lead to more stable price action, though buyers remain cautious following the aggressive 24-hour drop. Similar resets are often seen when speculative activity returns to levels that reflect actual spot demand rather than forced leverage.
Monitoring exchange netflow and supply supply dynamics
In the spot market, exchange netflow recorded a positive reading of roughly $340.75K in the latest session. This indicates that more SKYAI tokens were moved onto exchanges than were withdrawn to private wallets, effectively increasing the liquid supply available for trading. Increased inflows are often viewed as a precursor to additional selling pressure as holders move assets to platforms where they can be easily liquidated.
However, the modest scale of the inflow suggests that a large-scale distribution event has not yet occurred. Instead, traders appear to be cautiously monitoring price behavior near established support levels. If these inflows continue to grow, it could test the resolve of the buyers currently holding the $0.168 demand zone.
Outlook for the Forward Industries business proposal
The primary fundamental factor currently under review by SkyAI, Inc. is the potential business combination with Forward Industries, Inc. Under the terms of the proposal, SkyAI stockholders would receive 0.367 newly issued shares of Forward common stock for each share of SkyAI they hold. A special committee of independent directors at SkyAI, Inc. was established on June 15 to evaluate this offer.
While the market waits for a formal decision from the committee, the token’s trajectory remains sensitive to technical thresholds. Earlier in June, price targets of $0.42 were projected for the month, with a close above that level expected to bolster the bullish outlook. For now, the focus remains on whether the $0.168 and $0.328 support levels can withstand the current market volatility.
The resilient engagement from traders despite the 36.2% drop mirrors trends seen in other sectors, such as the Dogecoin network signals that often precede shifts in sentiment for high-volume altcoins. Whether this “buy the dip” activity translates into a sustained recovery depends largely on the outcome of the pending corporate acquisition and the stabilization of the derivatives market.