"Growing potential for Skale cryptocurrency to plummet by approximately 40% in the near future"
In a surprising turn of events, the Skale crypto (SKL) has surged this week, reaching its highest level since February, defying the ongoing market downturn. The surge comes after the launch of the popular Hollywood-level game, It Remains, on Skale's network, which boasts a growing ecosystem of 129 games.
The recent surge in SKL's price can be attributed to the increased adoption and activity on the Skale network. In the last 30 days, Skale had over 3.9 million unique active wallets, marking a 23% increase. The launch of It Remains appears to have significantly contributed to this growth.
However, the crypto market has been facing a downturn due to a nosedive in Bitcoin and other top altcoins. The US publication of strong producer inflation data on August 14, 2022, may have also played a role in the market's decline, leading to a jump in liquidation.
Despite the recent surge, analysts have noted that SKL has become highly overbought, pointing to a potential 40% plunge. The Relative Strength Index (RSI) for SKL has reached an extreme overbought point at 86, and the Stochastic Oscillator has moved to 83, indicating a highly overbought asset.
However, it's important to note that there is no strong evidence indicating that SKL is expected to crash in the near term. In fact, analyses and price predictions from multiple sources suggest moderate growth or recovery rather than an imminent crash.
Price forecasts for 2025 estimate SKL ranging roughly between $0.027 to $0.046, with an average near $0.033–$0.034, indicating stability or moderate gains rather than collapse. Technical indicators also show SKL breaking multi-month downtrends and overcoming resistance levels, with momentum and exponential moving averages acting as support, signaling bullish strength rather than weakness.
Moreover, the SKALE DAO’s decision to double monthly chain fees aims to increase validator revenue, which could bolster network sustainability and token utility, countering bearish pressures.
While short-term price corrections are possible due to typical market volatility and technical resistance zones, the current sentiment and expert forecasts do not point to an expected crash in SKL soon. The token’s price movements appear to hinge more on adoption developments, validator rewards, and broader crypto market trends than an imminent collapse.
The chart above shows the SKL token's movement in relation to its moving averages. As of now, SKL has moved higher than its 50-day and 100-day moving averages, suggesting a possible mean reversion. If a mean reversion occurs, the potential target for SKL could be $0.027, a 40% drop from the current level.
Despite the potential for short-term corrections, the long-term outlook for SKL remains positive, with the token's price movements largely influenced by adoption, network sustainability, and broader market trends.
- The surge in Skale crypto (SKL) price can be linked to the increased adoption and activity on the Skale network, which has seen over 3.9 million unique active wallets in the last 30 days.
- In contrast, Bitcoin and other top altcoins have experienced a downturn, potentially due to factors such as the US publication of strong producer inflation data on August 14, 2022, leading to a marketwide decline.
- While analysts have pointed out that SKL has become highly overbought, with RSI at 86 and the Stochastic Oscillator at 83, suggesting a potential 40% plunge, moderate growth or recovery is expected according to various price predictions and technical indicators.
- The SKALE DAO’s decision to double monthly chain fees is expected to increase validator revenue, bolstering network sustainability and token utility, thereby countering bearish pressures.
- Investors should be aware of the potential for short-term price corrections, but the long-term outlook for SKL remains positive, with the token's price movements primarily influenced by adoption, network sustainability, and broader market trends.
