- Sonic forms a falling wedge pattern signaling a potential bullish reversal.
- Strong support at $0.235, resistance at $0.30, $0.42, and $0.62 a potential target.
- RSI bullish divergence supports upside breakout if volume confirms move.
Testing the upper boundary of a falling wedge, Sonic (S) signals a potential bullish breakout. The token trades at $0.2788, down 0.97% in 24 hours but up 17.82% over the past week, with a strong $101 million trading volume backing the move.
Critical Resistance After Months in a Falling Wedge
Sonic (S), is positioning for a breakout after months of price compression inside a falling wedge on the daily chart. The pattern, defined by descending resistance and support lines, typically signals a bullish reversal, especially after a downtrend like Sonic’s recent performance.
Source Jonathan Carter Via X
Price is currently testing the wedge’s upper boundary near $0.30, a critical resistance aligned with the 50-day simple moving average (SMA).The falling wedge has held Sonic in a tightening range, with volume tapering down during the pattern’s formation — a textbook behavior for this setup.
Traders closely watch for a volume surge to confirm a breakout, which appears to be forming near the apex of the wedge. Support around $0.235 has proven reliable, providing a solid base for any upward move.
Volume and Momentum Indicators Support Upside Potential
Sonic’s price rallies are often accompanied by sharp volume spikes, showing strong buying after bouncing from support. The RSI signals rising strength even as the price dips lower .
This suggests underlying strength even as the price faced pressure hinting at a potential upward move.Sonic faces resistance at $0.30, with tougher hurdles at $0.42, $0.48, and $0.62. These levels could see some selling, but if Sonic breaks out with steady volume, it has a clear path toward these targets.
Mixed sentiment, but Sonic’s technical hints break out.
Despite some short-term ups and downs, Sonic has seen renewed buying momentum, gaining 16.5% over the past week. Still, the token struggles with a year-to-date drop of over 60%, highlighting ongoing hurdles.
Futures trading volume on Binance and Bybit has fallen sharply, pointing to less speculative activity, while spot volume remains steady but modest. Open interest stays strong at $118 million, showing traders are actively engaged.
With the falling wedge pattern, volume signals, and RSI divergence all aligning, Sonic looks set for a bullish breakout—if it can break resistance with solid volume, traders will be watching closely.
