Sonic [S] has been on a significant upswing, currently trading at $0.5957, showing a 9.58% rise in the last 24 hours.
Breaking out of an inverse head-and-shoulders pattern, the cryptocurrency has signaled the potential for further upward movement. This technical pattern historically indicates strong bullish momentum, suggesting that Sonic’s price might surge by 35% to hit $0.80.
Nevertheless, as Sonic approaches crucial resistance levels, the critical question remains whether it can sustain its upward trajectory or potentially encounter resistance.
Analyzing Sonic’s price movement: Is the rally sustainable?
The price of Sonic has been exhibiting an upward trajectory following the breakout from the inverse head-and-shoulders pattern. Recent movements beyond the $0.55 and $0.60 levels indicate increasing strength in Sonic’s position.
In the upcoming period, Sonic is expected to encounter resistance levels at around $0.63 and $0.82. A successful breach of the $0.82 mark could trigger a rally towards $0.80. However, a failure to maintain momentum might lead to a retreat.
Traders are advised to closely observe these resistance boundaries and be ready for potential shifts in momentum.
Deciphering on-chain signals
Examining Sonic’s on-chain data reveals a mixture of bullish and bearish signals. The network’s growth has experienced a slight uptick of 0.15%, indicating a mounting interest.
Moreover, the percentage of Sonic holders “in the money” has risen to 21.26%, suggesting that numerous investors are currently profiting. This could serve as a foundation for continued price growth. On the flip side, significant transactions have dropped by 13.42%, potentially signaling a wane in institutional interest.
Furthermore, concentration has seen a marginal increase of 0.05%. These conflicting signals hint that while there is backing for a bullish trend, certain factors might impede further advancement.
Shifting sentiments towards bullish territory
There has been a notable swing in Sonic’s Weighted Sentiment in recent days. Starting from a low of -1.91 on February 16th, the sentiment has steadily upgraded to -0.934.
This positive change in sentiment suggests a growing trust in the coin’s price potential.
With this ascent in sentiment coupled with the optimistic technical indicators, Sonic appears poised to continue its upward trajectory in the near term. Additionally, favorable sentiment could draw in more investors, propelling the price upwards.
Is a $0.80 mark within Sonic’s reach?
Given the ongoing bullish price movements, escalating sentiment, and the confirmation of an inverse head-and-shoulders pattern, Sonic displays a robust growth outlook.
While on-chain signals present a mixed bag of indicators, the overall technical setup and increasing sentiment indicate a promising path towards surpassing the $0.80 milestone.
Consequently, Sonic stands a high chance of sustaining its bullish momentum and potentially hitting the $0.80 mark in the near future, provided it overcomes the impending resistance levels.