Surging Skale Crypto Faces 40% Crash—Here’s the Looming Risk

Skale’s parabolic rally might be setting up for a brutal correction. Traders are flashing warning signs as the token teeters near a critical resistance level.

Why the sudden bearish sentiment? The charts are screaming overbought—retail FOMO is clashing with whale profit-taking. A 40% nosedive wouldn’t just be likely… it’d be textbook.

Meanwhile, crypto ‘experts’ who missed the bottom are now scrambling to call the top. Classic Wall Street playbook—just with more memes and less regulation.

Why Skale crypto price may crash 

There are three main reasons why the soaring Skale may crash in the near term. First, sentiment in the crypto markethas changed, with Bitcoin (BTC) and other top altcoins nosediving. The decline happened as liquidation jumped after the US published strong producer inflation data. A tumbling market often affects some of the best performers.

Second, SKL price will crash as the It Remains HYPE fades. In most cases, cryptocurrencies and stocks jump after a major event and then pull back as investors sell the news and look forward to the next big thing. 

Third, technicals suggest that the price has become highly overbought. The Relative Strength Index jumped to the extreme overbought point at 86, while the Stochastic Oscillator moved to 83. A highly overbought asset tends to pull back as it loses momentum. 

Similarly, as the chart above shows, the token has moved higher than the 50-day and 100-day moving averages. As such, it could have a mean reversion, where it drops to get closer to these averages. If this happens, the potential target will be $0.027, its highest point in July and May, down by 40% from the current level.