Sky (SKY) is trading in the $0.069 range, falling below a previously suggested long position entry price. On the 25th, Sky's price stood at $0.06976.

On the 20th, technical analyst Nicole_TA, active in the CoinMarketCap community, presented a long position strategy using 2x to 5x leverage for the SKY/USDT trading pair. The strategy, based on expectations of a price rise, specified an entry zone, target prices, and a stop-loss price.

■ Long Position Strategy: Entry Zone, Target Prices, and Stop-Loss

The long position entry zone presented by Nicole Venam was $0.07160 to $0.07200. The current price on the 25th ($0.06976) is about 2.57% below the lower bound of the entry zone at $0.07160 and about 3.11% below the upper bound at $0.07200.

Target prices were presented in stages. The first target price was $0.07550, requiring an increase of about 8.23% from the current price. Subsequent step targets were set at $0.07900, $0.08400, and $0.08900, with additional upside targets at $0.09500, $0.10200, $0.11000, and $0.12000. However, these are price levels set by the analyst and have not been confirmed as actually reached.

The stop-loss level was set at $0.07000-less precisely, $0.06500, which is about 6.82% below the current price of $0.06976.

■ Technical Analysis Basis: FVG, Rising Trendline, and Horizontal Support Zone

The analysis was based on the fair value gap (FVG) on the 6-hour candle chart, a rising trendline, and a horizontal support zone. FVG refers to a price imbalance zone formed on the chart when price moves rapidly, and some technical analyses use such zones as a reference for observing future price movements.

Nicole Venam explained that on the 6-hour chart, rising trendline support and a horizontal price level formed at the point of entry. The analyst also concluded that the price rebounded from a low and has held that area.

■ Price Below Entry Zone, Creating a Divergence from the Analysis

However, the current Sky price remains below the entry zone presented at that time, creating a discrepancy between the technical analysis from the 20th and the price level on the 25th. In particular, the current price is below $0.07160, which was presented as the lower bound of the entry zone. That said, it is difficult to determine whether this price level will continue to act as technical support without up-to-date chart analysis.

■ Caution on Leverage Trading Risks

The risks of leverage trading must also be considered. With 2x to 5x leverage, price movements in the underlying asset are reflected more significantly in the investor's profit and loss relative to their margin. If the price moves contrary to expectations, losses can widen and the risk of forced liquidation arises.

In Sky's price movement, the difference between the current $0.06976 and the previous entry zone ($0.07160 to $0.07200) is evident. The stop-loss price set at the time ($0.06500) and the first target price ($0.07550) can also serve as benchmarks for comparing price changes. However, the target prices presented in technical analysis are not definitive forecasts, and the fact that the current price is below the entry zone alone cannot predict further declines or a rebound.

[This article is intended to provide information for investment reference and does not recommend buying or selling any specific asset. Conditions may vary depending on market circumstances. Investment decisions and the resulting responsibility rest with the investor. AI provided partial assistance.]