IYO SKY was close to defeating Lyra Valkyria and advancing to the Finals of the inaugural Women's Intercontinental Championship. However, the former NXT Women's Champion stunned her opponent, and she will now take on Dakota Kai, with the winner becoming the inaugural Women's Intercontinental Champion.
IYO SKY missed another chance to become a champion again in WWE and will now search for her next storyline. Next week, RAW will enter a new era with its move to Netflix.
That said, we take a look at four directions for the former Women's Champion after her defeat to Lyra Valkyria on RAW.
#4. She wins the Women's Royal Rumble Match
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IYO SKY has done a great job since moving to the main roster and is considered championship material for WWE. Thus, it wouldn't come as a surprise if she got another title opportunity soon.
How could this happen, though? The answer is through the Royal Rumble. IYO SKY could win the Women's Match and get a title shot at WrestleMania 41. That way, she could move to SmackDown to challenge the Women's Champion Nia Jax (or Tiffany Stratton if she cashes in her Money in the Bank briefcase), stay on RAW, and go after Liv Morgan or Rhea Ripley.
IYO already had a title match against Liv Morgan, while she teased a feud with The Eradicator about the red brand.
#3. She could start a feud with Dakota Kai if the latter cheats to win the Women's Intercontinental Championship
Dakota Kai and Lyra Valkyria are considered two top faces in WWE and will now fight for the inaugural Women's Intercontinental Championship.
Even if Dakota appears to be the favorite to win the match, WWE could create a new angle by having her cheat to defeat Lyra and become champion. On that occasion, IYO SKY could confront her about how she won the title.
That way, she could be forced to leave Damage CTRL and emerge as the first contender for Dakota Kai's title.
#2. She could be revealed as the mastermind behind Kairi Sane's attack
Kairi Sane has been out of action following a backstage assault on RAW a couple of weeks ago. It appears that Pure Fusion Collective assaulted her as part of the rivalry between the two factions, but WWE could follow a different path and reveal IYO SKY as the mastermind behind the assault.
That way, the former Women's Champion will be forced to leave Damage CTRL and will start a feud with the other faction members, who will seek revenge on her.
At the same time, Kairi Sane could return and challenge IYO to a match at Saturday Night's Main Event on January 25.
#1. IYO SKY could have a heel turn
It has been nearly nine months since IYO was a heel in WWE. Following her loss to Bayley at WrestleMania 40, she started to have a face turn and has been a babyface over the past few months.
Following her loss to Lyra Valkyria, though, this could change, and the former champion could turn heel again and abandon her Damage CTRL friends.
On that occasion, she could either go on a single run as a heel and go after Dakota Kai for the Women's Intercontinental Championship or join Pure Fusion Collective, who have done a great job as heels over the past few months.