Skale, a blockchain platform known for its low-transaction-cost gaming network, saw a significant price surge this week following the launch of the popular game ‘It Remains.’ However, experts warn that the coin’s rapid rise may lead to a substantial correction in the near future. 170% gains have propelled SKL into top performer territory but overbought conditions suggest a potential drop of up to 40%. While this surge is driven by the It Remains integration and growing gaming ecosystem, several factors contribute to this concern.
The cryptocurrency market as a whole has experienced a downturn recently. This downward trend affects even those with strong performance, and Skale may be vulnerable to this shift in sentiment. The excitement surrounding ‘It Remains’ could eventually fade, leading to sell-offs as investors look for new investment opportunities. Technical indicators also suggest overbought conditions for SKL, as reflected by the RSI at 86 and the Stochastic Oscillator at 83.
Further downside potential lies in this highly overbought condition. The current price could drop to its previous peak of $0.027 – a decline of up to 40% from the current level. This potential reversal suggests a mean reversion, returning SKL to a more sustainable price point.