SKY whale transfers 137M tokens to Coinbase as price nears $0.060
An address linked to dragonfly_xyz transferred 137M SKY (about $9.05M) to Coinbase, according to Arkham data. The tokens were bought on Binance about five years ago for ~$20.45M, implying an unrealized loss of roughly $11.4M.
Exchange inflows can signal preparation to sell or increased liquidity. If SKY is dumped, it could pressure order books and worsen downside momentum.
Market positioning remains bearish. Coinalyze data shows SKY sell volume (~579M) exceeded buy volume (~545M) over the past week, leaving a Buy-Sell Delta around -31M and consistent with aggressive perps selling. On the spot side, sellers also led (sell volume ~42M).
Technicals point to continued weakness. SKY has been trading in a multi-month descending channel after rejecting near $0.09. It recently traded around $0.065 (still down ~7% weekly) after falling as low as ~$0.064. Directional indicators show ADX ~28 with -DI (~27) far above +DI (~1.6), suggesting bears retain control. RSI is near 26, deeper into oversold territory, which traders often interpret as sustained selling until a clear reclaim occurs.
A further drop is possible, with a scenario target around $0.060. For a reversal, the article cites the need to clear May losses and close above ~$0.083.
Bearish
This news is bearish for traders because it combines a potential exchange-inflow sell signal with confirmed negative flow and trend indicators for SKY.
First, the whale transfer (137M SKY) to Coinbase can function as a “prep-to-sell” cue. Similar past patterns often see exchange deposits precede distribution, especially when the holder is already sitting on large unrealized losses—investors may decide to reduce exposure rather than wait.
Second, order-flow data remains hostile: sell volume leads buy volume on both derivatives (perps) and spot. That supports the idea that rallies may be sold into, limiting upside follow-through.
Third, the technical setup aligns with continuation risk: ADX is elevated with -DI far above +DI, while RSI is stuck near oversold (around 26). In comparable market regimes, once bearish directional strength persists, oversold bounces can fail quickly and price often tests the next support level—here cited around $0.060.
Short term, traders may expect higher sell pressure and volatile downside. Longer term, a reversal would likely require strong demand to reclaim key levels (the article highlights a close above ~$0.083). Until that confirmation, the probability of continued weakness remains higher than a sustained bull turn.