Sonic [S] Surges 69% in a Week: Are the Odds of it Breaking $1?

 

After hitting a bottom of $0.39 a fortnight ago, Sonic [S] has been on a consistent upward trend.

At present, Sonic is trading at $0.98. This signifies a 25.07% rise as per the daily charts. During the same period, the trading volume has shot up by 58.71% to $1.12 billion.

In addition, the altcoin has displayed gains on both weekly and monthly charts, climbing by 69.89% and 47.99% respectively.

Following the recent price surge, there has been significant discussion among key players. Notably, well-known crypto analyst Ali Martinez has hinted at a potential correction, referencing TD sequential.

Market Sentiment Insights

Ali Martinez proposed in his analysis that Sonic has reached the target indicated by its head and shoulder pattern.

As a result, the TD sequential has shown a sell signal on the 4-hour charts.

With this sell signal, there is a high likelihood of investors opting for profit-taking, leading to downward pressure on Sonic as selling momentum increases.

Considering this scenario, we might witness a decline in Sonic prices post the entry of sellers into the market. The question remains whether the aforementioned analysis proves true or if buyers will counter any selling pressure.

Analysis from Sonic’s Charts

According to the analysis by CryptoCrypto, Sonic is still enjoying a robust upward momentum driven by active buyers.

The ascending MACD line indicates a strengthening upward trend. This suggests that the short-term price movement is gaining strength compared to the long-term price trend.

With the MACD line positioned above the signal line and histogram, it confirms a strong bullish momentum, hinting at a potential continuation of the uptrend.

This solidifying upward trajectory indicates active buyer participation in the market, propelling prices higher through genuine demand. This is further validated by the increasing RSI, which has surged to 77.

While the RSI is on the rise, it has not yet entered extremely overbought territories where a correction becomes likely. Therefore, there remains some potential for growth before a significant downturn occurs.

Moreover, Sonic’s Open Interest (OI) has surged by 44.26% to reach a new peak of $152.28 million.

An increase in OI alongside rising prices implies a bullish sentiment among investors, leading to an increase in long positions. Consequently, new participants are entering the market, showcasing strong demand for S.

Lastly, Sonic’s aggregated funding rate AVG has maintained a positive trend in the past two days. This indicates that long positions are bullish and willing to pay an additional fee to uphold their positions.

Sonic is still witnessing strong bullish sentiments, positioning S for further advancements on its price charts. Hence, in the short term, the uptrend is likely to persist.

However, to sustain this optimistic view, S must remain above $0.9. A breakthrough above this level could propel the altcoin to reach a two-month high of $1.0.

On the contrary, the failure to hold these levels might lead to the projected correction by Martinez, causing S to decline to $0.844.