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SKALE (SKL) has staged a remarkable comeback in recent weeks, rallying over 115% in the past seven days and drawing renewed attention from traders and investors.
However, beneath the bullish momentum, several on-chain signals are raising concerns about the sustainability of the rally.
SKALE’s partnership with ‘It Remains’
SKALE’s rally began to accelerate after the integration with “It Remains,” a dystopian transmedia franchise, into the SKALE Network.
The integration promises to merge immersive storytelling with blockchain features such as gas-free transactions, interactive AR/VR experiences, and NFT-powered governance.
SKALE’s gasless, Ethereum Virtual Machine-compatible chains are being positioned as the backbone for the project, offering fast, cost-free interactions that aim to drive mass adoption.
Following the announcement, SKALE’s daily trading volume spiked nearly 2,700% to $279 million before surging again to $905 million on major exchanges like Binance and Bithumb.
The price jumped as high as $0.054 during the month, a dramatic recovery from June’s all-time low of $0.01596.
The network has also reported over 3 million unique active wallets and more than 681 million transactions to date.
Massive trading volumes stir questions
While heavy trading activity often reflects strong demand, SKALE’s Chief Technology Officer, Stan Kladko, has cautioned that some of the surge may be driven by automated trading bots.
If true, this could mean that parts of the rally are artificially inflated, increasing the risk of volatility if bot activity declines.
Lots of people today bought SKL to immediately sell it to other people These other people bought it to sell to yet other people. Or bots I hope people and bots had fun in the process :)) #crypto #ethereum @FAIR_Blockchain #skale
High volume spikes without a proportional increase in organic demand can create unstable market conditions.
In such cases, prices may retreat quickly once speculative interest fades. This concern comes as the broader crypto market remains sensitive to shifts in sentiment, particularly among altcoins.
On-chain signals hint at profit-taking
Alongside the surge in volume, on-chain data shows a sharp increase in dormant coin activity.
The number of long-idle SKL tokens suddenly moving rose by 420% in just one session, from 33.36 million to 173.62 million SKL.
Historically, such spikes have preceded price pullbacks as early holders move to secure profits.
At the same time, whales have reduced their holdings by roughly 130 million SKL, while exchange reserves have climbed by 2.44% in 24 hours.
An increase in coins held on exchanges often signals that holders are preparing to sell, which can add selling pressure to the market.
Price momentum faces its biggest test
Despite its impressive performance, SKALE’s rally is now encountering resistance.
The token has pulled back from recent highs and is trading near $0.044, with a market cap of $256 million.
While it remains up over 127% in the past two weeks, the mix of high bot-driven trading, rising exchange balances, and whale sell-offs could cap further upside in the short term.
For now, the SKALE story is one of both opportunity and caution.
While its integration with It Remains has spotlighted its capabilities and attracted fresh attention, the underlying trading patterns suggest that without sustained organic demand, the rally could struggle to maintain its current pace.
Traders should watch closely to see whether SKALE can turn short-term hype into lasting growth or whether the recent surge will fade as quickly as it began.
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