Sonic, the popular cryptocurrency previously known as FTM, has experienced a significant uptick in trading activity over the last few weeks, showing resilience in the face of market fluctuations. While recent price movements saw Sonic dip below the $0.80 mark, the overall trend is still pointing upwards, suggesting that there may be more gains ahead for the coin.
Over the past two weeks, Sonic has demonstrated a bullish strength, recovering from early February losses and pushing toward the $1 mark. Although its value retraced slightly from a recent high of $0.99, there are several reasons why investors remain optimistic about its future performance.
Recent Price Movements and Key Support Levels
Despite the dip below $0.80, which caused a 46% decrease in trading volume, Sonic’s price action is showing promising signs for a continued upward trend. As of now, the $0.80 and $0.73 levels are being tested as support, which is often a positive signal in technical analysis. If these levels hold, it could pave the way for Sonic to push higher once again.
The fact that these price levels are being retested suggests that buyers are actively defending this zone, a crucial indicator that the market is still in a favorable position for the bulls. The strong momentum combined with higher-than-usual trading volume suggests that there is continued buying interest, which is likely to drive Sonic back to higher price levels.
The Uptrend Is Far From Over: A Look at Sonic’s Chart
A closer look at Sonic’s 4-hour chart reveals a strong uptrend in play. Since breaking above the $0.60 resistance level, Sonic has formed a series of higher highs and higher lows, an indication of bullish momentum. This resistance level had previously marked a turning point in early February, when Sonic’s price had dropped to a low of $0.315 during a sell-off.
However, the recent upward move has been sustained by significant buying pressure, with the volume bars showing a clear surge in buyer activity, particularly in the last week. As Sonic broke through the $0.80 resistance, it continued to maintain a favorable market structure, supported by substantial volume growth.
What the Technical Indicators Are Saying
Several key technical indicators also point toward continued bullish behavior for Sonic. The Directional Movement Index (DMI), which tracks the strength of trends, shows that both the +DI (positive directional indicator) and the Average Directional Index (ADX) are above 20. This indicates that a strong uptrend is currently in progress, with the market showing signs of continued strength.
The On-Balance Volume (OBV) indicator, which measures buying and selling pressure based on volume, has also made significant gains recently. The OBV reading is well above its local low, reinforcing the notion that Sonic’s positive momentum is supported by substantial buying activity.
What Could Reverse the Trend?
While the overall outlook remains positive, there are some risks to consider. A move below the $0.75 mark could signal a weakening of Sonic’s bullish structure, though it would not necessarily reverse the market trend completely. Such a move could lead to a deeper retracement, possibly taking the price toward the $0.609 or $0.505 range.
However, this is still unlikely to flip the market completely to a bearish sentiment. The recent surge in buying pressure suggests that if the price does dip, it will likely find strong support at these lower levels before moving higher again.
The Role of Liquidation Zones
One critical aspect of Sonic’s price movement is its liquidation heatmap. According to data from Coinglass, there is significant liquidity below the $0.80 mark and between the $0.95-$1 range. These levels represent key price targets for traders in the coming days. If Sonic’s price dips to the $0.739 level, it could trigger a sweep of liquidity, forcing out some long positions. However, this is expected to be short-lived, as the overall buying momentum remains strong, and the market could quickly rebound.
For now, traders should be cautious about potential short positions in Sonic, as any dips below $0.80 are likely to be temporary. The $0.71-$0.73 range is expected to act as a strong demand zone, providing support to the price in the short term.
What’s Next for Sonic? Price Predictions Ahead
Looking further ahead, Sonic’s price could face a new resistance level once it breaks past $1. The next notable resistance is expected to be around the $1.4 mark, which would represent another critical challenge for the bulls to overcome. If Sonic can maintain its momentum and break through this level, it could set the stage for further price increases.
Overall, despite the recent dip below $0.80, Sonic is showing all the right signs for continued growth. Investors will need to monitor key support levels closely, but the combination of strong buying volume, positive technical indicators, and a favorable market structure suggests that Sonic is poised for further gains in the near future.
In conclusion, while the dip below $0.80 may have caused some concern among traders, the broader picture remains bullish. With strong buying pressure and key support levels in place, Sonic’s upward trend could continue, making it an attractive option for traders looking to ride the next wave of growth.
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