The sonic price has risen about 10% this week, and is now trying a major level of resistance to be held since December. After the months of sliding down, the momentum appears to be moving, but is that enough? Is this another failed attempt, or will Sonic finally break?
Let's take a look at a technical setup and see if the fall of $ 2,000 in Sonic makes sense today.
Sonic is still trapped under a downward run
The S has been locked under a clear downward racing since mid-December 2024. That trendline rejected three major rallies, first near $ 1.60, again at $ 1.00 in early March, and latest just under $ 0.60. Whenever the price approached this line, the sellers came in and pushed it back.
From the peak of December to the low march, the sonic price dropped by more than 67%, hitting a low close to $ 0.38. After finding support for that range, it rebounded and began to press back to the resistance. So far, Sonic trades around $ 0.51, sitting right below that trendline again.
Unless the sonic manages a powerful daily near the top of the $ 0.55- $ 0.60 level, the long-term downtrend remains control.
Sonic price support holds and the higher lows form
Despite the firm holding the trendline, the structure below improves. The zone between $ 0.38 and $ 0.43 has acted as a reliable support base for months. The sonic price has been bouncing from that level several times since February, suggesting that consumers are defending the area.
More noticeable, the sonic chart (s) shows a pattern shift. After the lower lows were formed by March, the sonic price was printed a higher in late March, followed by a higher low in April. This change in market structure often indicates that bullish momentum builds. If the trendline gives way, it can trigger a rally towards $ 0.65 or even $ 0.90.
Until then, the $ 0.40 remains the main floor, with $ 0.30 as the next support level if it fails.
So, should you put $ 2,000 in sonic?
Sonic price is in a technical crossroads. While the downtrend is technically intact, the emergence of higher lows and strong support suggests a move can be carried out. A confirmed breakout above the downward trendline with volume can open the door to higher price targets.
However, without that breakout, Sonic was at risk of another denial and potential pulling in the $ 0.40 zone. If that support is broken, the price can revisit the marches.
Putting $ 2,000 in Sonic now offers reversed potential, but if only a breakout is confirmed. Until that happens, the setup remains unchanged, and the caution is warranted.
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