Seeker’s momentum quickly waned after its launch. After peaking at around $0.067, Seeker’s price is now down almost 70% and trading around $0.024. This drawdown wiped out much of the early excitement. Although the token is still well above the launch threshold, price action shows that buyers are exiting rather than defending the level.
The key issue is no longer the upside potential. The question is whether the seeker can avoid another low leg. At this point, the outcome no longer depends on the bulls. It’s up to the bear.
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Momentum and flow signals show selling pressure remains prevailing
The first warning comes from money flow.
On 4-hourly chart, Chaikin Money Flow (CMF) has been below zero since January 24th. CMFs use price and volume to measure the flow of money into and out of assets. A negative value means money is going out rather than coming in.
Seeker attempted to retrieve the CMF on January 26, but was unsuccessful. Since then, CMF has continued its downward trend, suggesting that buyers are not returning with confidence. At the moment, CMF appears to have broken the uptrend line, which could negatively impact seeker prices if confirmed.
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Short-term momentum supports this weakness. On the hourly chart, Seeker made a small new high from January 26th to 27th, while RSI made a lower high.
The Relative Strength Index (RSI) measures the strength of momentum. If the RSI weakens even as prices rise, it indicates that buying pressure is weakening. This bearish divergence explains why the recent rally failed to extend.
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Combined, the weakening of the CMF and RSI suggests that downward pressure remains active.
Spot data shows no accumulation as price approaches risk level
On-chain data reinforces the bearish setting. Exchange balances increased by 5.31% in the past 24 hours, increasing the total SKR held by the exchange to 467.08 million tokens. This corresponds to approximately SEK 23.6 million transferred to the exchange.
When a token moves to an exchange, it usually indicates an intent to sell. At the same time, smart money holdings fell by about 4%, with no meaningful buy-in or confidence of a rebound.
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Simply put, spot demand has disappeared. This is important because seekers are currently nearing the level at which buyers typically intervene after a near 70% correction from post-launch highs. Under normal circumstances, bulls will defend this zone. But they don’t appear.
Why derivatives bears decide to crash seeker prices
The story reverses here. In the absence of spot buyers, the only remaining force that can prevent a collapse is bearish leverage.
The liquidation map shows where leveraged traders are forced to close their positions. Even in the absence of real demand, liquidations can cause rapid price fluctuations. Leverage means a trader borrows to increase position size, which increases liquidation risk.
In Bitget’s 30-day SKR/USDT perpetual market, long leverage is approximately $1.49 million, while short leverage is approximately $3.06 million. This means that the bearish position is more than 100% dominant.
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If the SKR price rebounds towards $0.030, approximately $1.2 million of short positions will begin to be liquidated. That could trigger a short squeeze, forcing the bears to buy back SKR and pushing the price higher.
However, this distinction is important. A short squeeze is not a bullish conviction. This is a forced purchase.
If the bears do not fall into the trap, seekers risk sliding down $0.019, triggering a 17% breakdown path. If the bears are trapped, their liquidation could be the only way to temporarily save prices. That is why seekers no longer depend on bulls.
