Sonic token has caught the attention of merchants after a strong bullish transfer from assist. With worth 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 critical momentum these days, catching the eye of merchants with a strong bullish engulfing candle. With worth 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:
- Sturdy bullish engulfing candle from the worth space low and every day assist at $0.39
- Value consolidating just below level of management, hinting at vertical accumulation
- $0.52 liquidity goal aligns with 0.618 Fibonacci and VWAP resistance
The current worth 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, worth 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 worth motion, characterised by greater lows on the decrease timeframe inside a compact buying and selling vary, typically results in additional bullish continuation.
One vital space to look at is the resting liquidity round $0.52. This degree stands out as an untapped excessive and a magnet for worth, 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 idea of liquidity means that markets search out areas of uncollected orders. As soon as worth had taken the lower-side liquidity and bounced onerous, 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 would mark the beginning of an extended consolidation section.
Proper now, the chart remains to be displaying indicators of energy. There are not any clear indicators of weak spot, and vertical accumulation patterns are inclined to proceed till exhaustion. Whereas it’s sensible to be cautious close to resistance, prematurely shorting Sonic and not using a 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.
