The Skale price has been in a strong bearish trend in the past few days. The token has dropped sharply as demand for the coin waned. It moved to a low of $0.06675, which was the lowest level on May 12th. It has dropped by more than 84% from its all-time high, bringing its total market cap to about $235 million, making it the 165th biggest coin in the world.
Skale Network is a relatively small layer 2 network that helps supercharge applications created in Ethereum’s blockchain platform. In addition, it helps to improve their throughput and reduce latency by providing a side chain.
It is also an EVM-compatible platform that was created using the Byzantine Fault Tolerant (BFT) technology. As a result, apps supercharged using the network are able to run 1,000x faster with no gas fees. In addition, the SKALE token is used for the network’s governance as the network’s validators are Ankr, Figment, Chorus, and Staked. Finally, the network unveiled a $100 million grant to accelerate the development to grow the network.
Turning to the daily chart, we see that the Skale Network price has formed a head and shoulders pattern whose head is at $0.3300. In technical analysis, this pattern is usually a bearish signal. The coin managed to move below the neckline of this pattern. At the same time, it formed a break and retest pattern by moving back to $0.0946. The coin has dropped below the 25-day and 50-day moving averages.
The Skale price also formed a bearish flag pattern, which is usually a bearish signal. Therefore, the outlook of this coin is bearish, with the next key support level being at the psychological point at $0.05, which is about 30% below the current level. On the flip side, a move above the resistance at $0.0946 will invalidate the bearish sign.
This post was last modified on %s = human-readable time difference 08:13