SKALE (SKL) Bounces Back From 32% Drop — Consolidation May Follow

Key Takeaways

• Breakout Zone: SKL exited its accumulation phase between $0.030 and $0.040.
• Support Holding: Immediate support at $0.0665 aligns with the 0.382 Fibonacci.
• Upside Targets: Resistance at $0.0944 and wave (5) target near $0.1050.

SKALE (SKL) has broken out of its long-term accumulation zone between $0.030 and $0.040, initiating a strong bullish rally to $0.082.

After facing resistance at the 0.5 Fibonacci retracement level, the price retraced to $0.0665, aligning with the 0.382 Fibonacci level, where it currently consolidates.

SKL Price Analysis

The SKALE (SKL) daily chart reveals a breakout from a long-term accumulation zone between $0.030 and $0.040.

This bullish move was followed by a rally to $0.082, coinciding with the 0.5 Fibonacci retracement level.

However, SKL faced resistance and retraced to the 0.382 Fibonacci level at $0.0665.

The Relative Strength Index (RSI) indicates overbought conditions during the rally but has since cooled off, suggesting a potential consolidation phase.

If the current support at $0.0665 holds, SKL could stabilize before attempting another leg higher toward the $0.0944 (0.618 Fibonacci) resistance level.

The price could revisit the accumulation zone near $0.0409 if support fails. This would still align with the broader bullish structure and provide a strong base for future upward moves.

Key levels to watch include the 0.382 Fibonacci as immediate support and the 0.618 Fibonacci as the next major resistance.

Key Observations

• Accumulation Zone Breakout: SKL exited its long-term range between $0.0298 and $0.0409.
• Resistance at 0.5 Fibonacci: The rally faced resistance at $0.0816.
• Support at 0.382 Fibonacci: Immediate support lies at $0.0665 for consolidation.
• Upside Potential: The next resistance is $0.0944 (0.618 Fibonacci retracement).
• RSI Cooling: RSI suggests reduced momentum, allowing room for stabilization.

SKL Price Prediction 

The SKALE (SKL) 4-hour chart highlights the ongoing corrective wave (4) within a broader impulsive structure. The price has retraced from its wave (3) peak of $0.0855, finding support near $0.0563, aligned with the 0.5 Fibonacci retracement level.

A potential ABC corrective structure is forming, with wave (a) likely completed and wave (b) in progress.

The 4-hour RSI indicates recovery momentum from oversold conditions, suggesting the correction might stabilize before a higher continuation.

The price is testing the 0.382 Fibonacci retracement level near $0.0644 as a resistance zone. A breakout above this level would confirm the wave (b) advancement, targeting $0.0723 (0.236 Fibonacci) before a potential wave (c) decline.

The next key support lies at $0.0563 (0.5 Fibonacci), with further downside risk to $0.0509 (0.618 Fibonacci) if bearish momentum prevails.

On the upside, a confirmed wave (5) breakout would target $0.1050, aligning with the Fibonacci extensions.

Key Levels to Watch

Support Levels:

• $0.0644: Immediate support near the 0.382 Fibonacci level.
• $0.0563: Key support aligning with the 0.5 Fibonacci retracement.
• $0.0509: Strong support near the 0.618 Fibonacci level.

Resistance Levels:

• $0.0723: Immediate resistance at the 0.236 Fibonacci retracement.
• $0.0855: Wave (3) peak and a critical breakout level.
• $0.1050: Wave (5) target aligned with Fibonacci extensions.