SKY has consolidated near $0.0675 on Nov. 5 as a trader points to a possible recovery toward $0.085, alongside stronger quarterly net revenue and a proposal to bring Osero’s liquidity system to Base.
Summary
- SKY faces resistance at $0.070–$0.072, with a trader identifying a conditional target of $0.085.
- Net revenue reached $37.19 million in Q3 as expenses fell faster than gross revenue.
- Sky remitted $28.47 million to reserves, bringing the quarter-end balance to $85.08 million.
- Osero’s proposed Base deployment includes a USDC vault with a $15 million deposit rate limit.
Crypto With Gopal identified a falling wedge on SKY’s four-hour chart, describing a narrowing trading range after the token’s prolonged correction. In the trader’s Nov. 5 post, price remained inside the formation, with a breakout still needed to activate the bullish scenario.
SKY price needs to clear $0.072
The trader placed the breakout zone between $0.070 and $0.072, above the consolidation area near $0.0675. A move through that range could open a recovery toward $0.085, according to the analysis, while support near $0.063 remains the main downside reference.
Measured from the post’s $0.0675 reference price, the upper target would represent a gain of approximately 25.9%. Reaching the breakout zone first would require a rise of roughly 3.7% to 6.7%, while a retreat to the cited support would amount to a 6.7% decline.
The chart shows lower highs and lower lows converging as SKY trades below its October peak. Gopal interpreted the narrowing wedge as a sign that selling pressure could be weakening, although the post did not show price clearing its upper boundary.
His forecast therefore depends on a move above resistance. The $0.085 level is a chart target, separate from any valuation estimate based on protocol earnings.
Sky’s higher net revenue came from lower costs
Sky Frontier Foundation’s quarterly report put Q3 net revenue at $37.19 million, up 11.8% from the previous quarter. Gross protocol revenue fell 7.4% to $99.29 million, while total expenses dropped 16% to $62.10 million.
With costs falling faster than revenue, the reported net revenue margin rose from 31% to 37.5%. The quarter was Sky’s sixth consecutive period of positive net revenue.
Milk Road Crypto’s breakdown of the results identified savings payouts as the largest driver of the improvement. Payouts fell from $11.97 million to $41.94 million as sUSDS supply declined from $5.52 billion to $4.52 billion.
In comparison, the $11.97 million reduction in payouts exceeded an $8.06 million revenue decline, leaving a $3.91 million improvement in net revenue. Those figures describe lower savings payouts during the quarter, alongside a smaller savings-token balance.
Of the quarter’s net revenue, $28.47 million went to Sky Reserves. The closing balance of $85.08 million covered approximately 56.7% of the $150 million reserve target, leaving $64.92 million to reach it.
SKY buybacks and institutional holdings feature in Q3
Milk Road’s breakdown put the allocation to SKY buybacks and USDS payments to stakers at $8.72 million, comprising $5.60 million in buybacks and $3.12 million in USDS rewards.
The Foundation said Stage 2 of the buyback framework began funding purchases, staking rewards and permanent burns from net revenue. Its first burn removed 2.86 million SKY on Sept. 13.
Galaxy’s $100 million sUSDS treasury allocation featured in the quarterly report, alongside approval of the token as collateral in its institutional lending business. As crypto.news previously reported, the September update covered the treasury allocation and burn.
The Foundation’s partnership announcement identified Galaxy as a Nasdaq-listed company headquartered in New York, providing a U.S. public-market connection to the protocol’s institutional adoption.
Osero proposes a Base vault for Nov. 19
In a separate governance proposal, Osero outlined plans to connect its Ethereum and Base liquidity systems through Circle’s Cross-Chain Transfer Protocol and onboard a Gauntlet-curated USDC vault on Base.
The proposed vault would have a 15 million USDC deposit rate limit, replenishing at 10 million USDC per day, with unlimited withdrawals under the rate-limit configuration.
Transfers between Ethereum and Base would carry a separate 10 million USDC limit replenishing at 50 million USDC daily in each direction.
The proposal targets the Nov. 19 governance spell and depends on Sky Core actions and execution steps on both chains. It states that the spell itself transfers no tokens. After configuration checks, engineers plan a 1,000 USDS round trip through the Base vault and back to Ethereum.
