Almost 62% of the coin’s supply is controlled by the top 10 holders, which is generally viewed as a red flag.
Numerous leading cryptocurrencies have entered green territory over the past week, yet their gains can’t be compared to the triple-digit price explosion that SkyAI (SKYAI) experienced.
The big question now is whether this is the start of a major bull run or if there’s something shady beneath the surface that could trigger a massive decline.
The Big Winner
The lesser-known altcoin has skyrocketed by 300% over the past seven days and currently trades at almost $0.70 (per CoinGecko’s data). Its market capitalization neared $700 million, making it the 84th-biggest cryptocurrency.
Perhaps one of the main catalysts of the whopping ascent is the recent support from Bitget. The leading crypto exchange listed the SKYAI/USDT trading pair towards the end of April, and support of that type usually has a positive price effect on the involved digital assets since it leads to increased liquidity, improved accessibility, and boosted reputation.
Another potential driver could be the token’s relation to Artificial Intelligence, a trending theme that continues to attract attention and capital. SkyAI is a Web3 project that connects AI models to blockchain data across multiple networks. It uses its own Model Context Protocol (MCP) to help these systems interact with on-chain information. SKYAI is the native token of the ecosystem and enables payments for data access, staking, and governance.
Some analysts believe the coin’s uptrend is far from being over. X user Crypto_Jobs, for instance, claimed that SKYAI is in “full discovery mode,” adding that its trend remains “very bullish.” They set the next possible target at over $0.75, with no clear reversal signal on the horizon.
“Betting against such a trend could destroy your portfolio,” the analyst alerted.
So Many Red Flags
As mentioned above, the token’s rally was likely fueled by Bitget’s listing (among other reasons). However, several industry participants spotted that many wallets accumulated SKYAI right before the exchange announced its support.
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Loading up prior to such news suggests that some people may have had early access to information, allowing them to profit on the price increase while the rest of the market participants were left in the dark.
X users Crypto with Haris and ortegas also criticized the project. The former classified SKYAI as one of the “top scam coins” alongside RAVE, UB, and LAB, and warned investors that they could suffer painful losses if they jumped on the bandwagon.
The latter argued that the cryptocurrency is “another scam” because there’s no marketing, product, or revenue behind the project, only “pure manipulation.”
“Remember, only market makers decide where these kinds of tokens go, so be careful when entering trades,” they warned.
Meanwhile, CoinMarketCap’s data shows that almost 62% of SKYAI’s supply is controlled by the top 10 holders. This kind of setup makes the market highly vulnerable, because just a handful of people can drive the price up or down to suit their own interests.
Last but not least, we will touch upon the token’s Relative Strength Index (RSI). The ratio has surged past 70, suggesting that the valuation has increased too much in a short period and could be due for a correction. The index ranges from 0 to 100, and anything under 30 is usually interpreted as bullish territory.
