Seeker [SKR] experienced a sharp 292% rally from $0.091 to $0.359 over the weekend, squeezing short positions in the process. Since reaching that peak, the token has faced significant selling pressure as traders took profits.
Market data indicates intense selling activity following the rally. Negative funding rates and declining spot cumulative volume delta on August 31 suggested market participants expected the rally to end. Open interest in derivatives markets fell from $42 million on Monday to $24.6 million, reflecting profit-taking and market exits.
Technical Retracement Levels
SKR's rally broke through a previously bearish trend and decisively surpassed the $0.10 swing high from early July. The price reached $0.36, its highest level since February.
Technical analysts plotted Fibonacci retracement levels from the bullish swing. The golden pocket between $0.0126 and $0.0175 may serve as a support zone before another potential rally.
A further 40% decline could extend the retracement to the 78.6% level at $0.0125, according to technical analysis. However, this level is expected to attract buyer interest.
Current Market Conditions
Recent price action reflects broader market dynamics. Bitcoin's 1.88% decline to $76.6k over 24 hours contributed to downward pressure on altcoins including SKR.
On the 1-hour chart, the former $0.024 support zone has become resistance. The Relative Strength Index remained below neutral at 50, and on-balance volume was declining rapidly, indicating bearish momentum and heavy selling pressure.
The bullish trend established by SKR's weekend surge remains intact despite the current retracement phase, though continued weakness in Bitcoin could test this uptrend.
