Sonic [S] Surges 69% in a Week: Will it Break $1?

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

Currently, Sonic is being traded at $0.98 as per the latest data. This represents a surge of 25.07% on daily charts. During the same timeframe, the trading volume has surged by 58.71% to reach $1.12 billion.

Furthermore, the altcoin has shown gains on both weekly and monthly charts, increasing by 69.89% and 47.99% respectively.

Following the recent price surge, there is a lot of discussion among major stakeholders. Notably, renowned crypto analyst Ali Martinez has hinted at a probable correction, citing TD sequential.

Analysis of Market Sentiment

In his assessment, Ali Martinez suggests that Sonic has achieved the target from its head and shoulder pattern.

As this target is met, the TD sequential has indicated a sell signal on the 4-hour charts.

With this sell signal in place, it is highly probable that investors will opt for profit-taking, causing downward pressure on Sonic as the selling pressure rises.

Given this scenario, there is a likelihood that Sonic’s prices might start declining once sellers enter the market. The real question remains whether the aforementioned analysis will hold true or if buyers will counteract any selling pressure.

Analysis of Sonic’s Charts

Based on CryptoCrypto’s analysis, Sonic is still witnessing a strong upward trend with buyers dominating the market.

The rising MACD line indicates a strengthening upward trend, suggesting that short-term price movements are gaining strength in comparison to long-term prices.

With the MACD line positioned above both the signal and histogram, it confirms a robust bullish trend and signals a potential continuation of the uptrend.

This growing upward momentum indicates active buying activity in the market, leading to price increments driven by genuine demand. This is reinforced by the ascending RSI, which has soared to 77.

Although the RSI is climbing, it has not yet entered extremely overbought territories where a correction might ensue. Hence, there is still room for further growth before a notable decline occurs.

Delving deeper, Sonic’s Open Interest (OI) has surged by 44.26%, reaching a new peak of $152.28 million.

When OI rises in tandem with escalating prices, it indicates a bullish market sentiment, prompting an increase in long positions. Consequently, new investors are entering the market, showcasing strong demand for S.

Lastly, Sonic’s aggregated funding rate AVG has remained positive over the past couple of days. This signifies that long positions are bullish and are willing to pay a premium fee to maintain their positions.

Sonic continues to exhibit robust bullish sentiments, positioning S for further gains on its price charts. Consequently, in the short term, the upward trend is likely to persist.

However, to sustain this optimistic outlook, S needs to remain above $0.9. A breakout beyond this level will propel the altcoin to a two-month high of $1.0.

Conversely, failure to maintain these levels may result in the anticipated correction highlighted by Martinez, potentially causing S to drop to $0.844.