The atmosphere after the release of Seeker has quickly faded. With the price rising to nearly $0.067, the price of Seeker has now dropped by almost 70%, and trading is around $0.024. This decline has wiped away most of the initial excitement. Although the token is still clearly above its release basis, the price behavior indicates that buyers have retreated without defending the levels.
The key question is no longer about upside potential. The main concern is whether Seeker can avoid a new downward phase. Currently, the outcome no longer depends on the bulls. It depends on the bears.
Sentiment and flow metrics indicate that selling pressure is still dominant.
The first warning comes from cash flows.
In the 4-hour chart, the Chaikin Money Flow (CMF) has remained below zero since January 24th. CMF measures capital flows into an asset using price and volume. A negative reading indicates that money is leaving rather than coming in.
Seeker attempted to recover the CMF indicator on January 26, but failed. Since then, CMF has continued to decline, indicating that buyers are not returning with strong conviction. It appears that CMF is now breaking the rising trend line, which, if realized, could be detrimental to Seeker's price.
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The short-term trend confirms this weakness. On the 1-hour chart, Seeker made a slightly higher peak on January 26-27, but the RSI made a lower peak.
The Relative Strength Index (RSI) measures the strength of sentiment. When the price rises but the RSI weakens, it indicates a fading buying sentiment. This descending divergence explains why the latest retracements were short-lived.
A declining CMF and RSI together suggest that downward pressure continues.
Spot data does not show accumulation as the price approaches risk levels.
Blockchain data confirms the bearish setup. In the last 24 hours, exchange balances increased by 5.31%, raising the total amount of SKR on the exchange to 467.08 million tokens. This means about 23.6 million SKR moved to the exchange.
When tokens move to exchanges, it generally signals selling intentions. At the same time, smart money holdings dropped by about 4%, indicating that there is no significant dip buying and recovery belief.
Simply put, the spot market is lacking demand. This matters because Seeker is now approaching levels where buyers typically activate after nearly a 70% correction from the peak after the release. Normally, bulls would defend this area. However, they are not visible now.
Why are the bears of derivatives now deciding whether the price of Seeker will drop?
At this stage, the setup changes. With spot buyers absent, the only remaining factor to stop the decline is bearish leverage.
The liquidation map shows where leveraged traders would have to close their positions. Liquidations can cause sharp price movements even if there is no real demand. Leveraged trading means that investors borrow to increase their positions – this increases the risk of liquidation.
In the 30-day continuous market of Bitget, short positions amount to about 3.06 million dollars, while long positions are about 1.49 million dollars. Bearish positions thus dominate with over 100% superiority.
If the price of SKR retraces towards 0.030 dollars, about 1.2 million dollars of short positions may begin to liquidate. This could trigger a short squeeze phenomenon, forcing bears to buy back SKR and drive the price up.
This difference is important: a short squeeze does not mean a bullish sentiment – it is about forced buying.
Unless bears are trapped, the price of Seeker could drop below 0.019 dollars and trigger a 17% decline. If bears are trapped, their liquidations may be the only thing that temporarily prevents the price from falling. Therefore, Seeker is no longer dependent on bulls.