Sky Protocol token price jumps amid strong whale buying

The Sky Protocol token spiked Saturday to its highest level this year as whale accumulation intensifies and fundamentals strengthen.

With total value locked topping $6.1 billion, falling exchange reserves, and projected annual revenue of $350 million, investor confidence in the project’s long-term outlook appears to be accelerating, fueling momentum that could push the token even higher.

Whales accumulate Sky tokens

Sky Protocol (SKY), formerly known as Maker, jumped to $0.095, its highest level since December, and 190% above its lowest level this year. Its market capitalization is now at $2 billion. 

Nansen data shows that whales have continued to accumulate Sky tokens. They hold 23.67 million tokens, up by 1,666% in the last 90 days. Similarly, the top 100 addresses hold 23.37 billion tokens, a 1,000% increase. 

Meanwhile, additional data indicate that the supply of Sky tokens on exchanges has continued to decline. It has dropped to 219.94 million, down from 304 million on July 15. Falling exchange reserves are a sign that investors are not dumping their tokens.

A potential reason for the ongoing whale accumulation is that Sky is doing well. Its total value locked has risen from the year-to-date low of $4.86 billion to $6.1 billion. USDS, its native stablecoin, has gained a market capitalization of over $7.6 billion

According to TokenTerminal, Sky is on track to generate $350 million in revenue over the next 12 months, with the majority of this revenue expected to come from the Spark Protocol. It also has a strong balance sheet, with its treasury holding approximately $700 million in assets. 

Sky Protocol price technical analysis

The daily timeframe chart indicates that the Sky token price has been in a steady upward trend over the past few months. It jumped from the year-to-date low of $0.032 in February to $0.094 today.

Sky price has formed an ascending channel, and is targeting the upper side. It has also moved above the 50-day exponential moving average, while the Relative Strength Index is nearing the overbought level. 

The MACD has remained above the zero line since March. Therefore, Sky will likely continue rising as bulls target the key resistance at $0.1023, the highest swing on Dec. 4.