Sonic token has caught the attention of merchants after a strong bullish transfer from assist. With value now consolidating underneath key resistance, the subsequent breakout could possibly be simply across the nook—right here’s what the chart is telling us.
Sonic (S) token has proven some critical momentum recently, catching the eye of merchants with a strong bullish engulfing candle. With value now grinding towards key technical ranges, the subsequent few strikes could possibly 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 day by 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 robust bullish engulfing candle that shaped proper on the worth space low. This area additionally aligned completely with day by 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 stage. Following the push, value now finds itself consolidating close to the purpose of management—sometimes 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 larger lows on the decrease timeframe inside a compact buying and selling vary, usually results in additional bullish continuation.
One vital space to observe is the resting liquidity round $0.52. This stage stands out as an untapped excessive and a magnet for value, particularly with the 0.618 Fibonacci stage and VWAP resistance stacked simply above it.
Reaching that $0.52 area makes each technical and psychological sense. The idea of liquidity means that markets hunt down areas of uncollected orders. As soon as value had taken the lower-side liquidity and bounced laborious, the subsequent logical transfer is to focus on the highs.
That concentrate on additionally strains up with the worth space excessive of the present vary, that means a faucet of that stage 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 part.
Proper now, the chart continues to be displaying indicators of energy. There are not any clear indicators of weak point, and vertical accumulation patterns are likely to proceed till exhaustion. Whereas it’s good to be cautious close to resistance, prematurely shorting Sonic with out a clear rejection could possibly be dangerous. For now, the bulls are in management—and the $0.52 goal stays in play till confirmed in any other case.
