Sonic token has caught the attention of merchants after a robust bullish transfer from assist. With value now consolidating beneath key resistance, the subsequent breakout may very well be simply across the nook—right here’s what the chart is telling us.
Sonic (S) token has proven some severe momentum these days, catching the eye of merchants with a robust bullish engulfing candle. With value now grinding towards key technical ranges, the subsequent few strikes may very well be essential in figuring out whether or not we see continuation—or indicators of a reversal.
Key factors:
- Robust bullish engulfing candle from the worth space low and every day assist at $0.39
- Value consolidating slightly below level of management, hinting at vertical accumulation
- $0.52 liquidity goal aligns with 0.618 Fibonacci and VWAP resistance
The current value motion on Sonic Token has been notably impulsive, beginning with a powerful bullish engulfing candle that shaped proper on the worth space low. This area additionally aligned completely with every day assist round $0.39, giving the transfer vital technical weight.
The surge was accompanied by a rising quantity profile, confirming purchaser curiosity and demand at that degree. Following the push, value now finds itself consolidating close to the purpose of management—usually an indication that the market is constructing a base, not reversing.
Potential vertical accumulation
If Sonic continues to commerce above the purpose of management, this might sign the presence of vertical accumulation. This sort of value motion, characterised by increased lows on the decrease time-frame inside a compact buying and selling vary, typically results in additional bullish continuation.
One crucial space to observe is the resting liquidity round $0.52. This degree stands out as an untapped excessive and a magnet for value, particularly with the 0.618 Fibonacci degree and VWAP resistance stacked simply above it.
Reaching that $0.52 area makes each technical and psychological sense. The speculation of liquidity means that markets search out areas of uncollected orders. As soon as value had taken the lower-side liquidity and bounced exhausting, the subsequent logical transfer is to focus on the highs.
That concentrate on additionally traces up with the worth space excessive of the present vary, which means a faucet of that degree would full a full vary rotation from low to excessive. If Sonic begins distributing round that resistance space, that might mark the beginning of an extended consolidation section.
Proper now, the chart continues to be exhibiting indicators of power. There aren’t any clear indicators of weak point, and vertical accumulation patterns are likely to proceed till exhaustion. Whereas it’s sensible to be cautious close to resistance, prematurely shorting Sonic with no clear rejection may very well be dangerous. For now, the bulls are in management—and the $0.52 goal stays in play till confirmed in any other case.
