Sonic Stuck in a 48-Day Rut, Is a Break Coming Soon?
Stock prices for Sonic Corporation remain stagnant within a set range; will increased volume lead to a breakthrough?
In the past 48 days, Sonic, formerly known as FTM, has been cramped within a tight range, displaying no signs of a powerful breakout. The market's resistance is mounting, and volume is dwindling, keeping traders on their toes. But what does this mean for the crypto's next big move?
Technical Breakdown
Price is currently stuck in a well-defined range, with both high and low boundaries establishing clear limits. Above the current levels, resistance is formidable, with significant barriers including the VWAP SR, the 0.618 Fibonacci level, and the value area high. These resistances keep price suppressed, hinting at continued rotational action.
Volume has been consistently low, another crucial factor that suggests consolidation could continue. Without a substantial boost in trading volume, a breakout seems unlikely. Sonic is currently hovering around the midpoint of its range. Losing this midpoint would significantly boost the chances of a cascading move downward, targeting unexplored liquidity pools and lower support levels.
The Big Picture
The bearish outlook revolves around the possibility of a cascade: losing the midpoint could trigger sharp downside moves, sweeping away liquidity. Conversely, a bullish sentiment would necessitate a strong reclaim of the VWAP SR resistance, backed by multiple closing candles, potentially sparking a move back to the range highs.
Going Forward
With volume remaining below average, Sonic is likely to keep bouncing within its 48-day range unless there's a surge in trading activity. A robust reclaim of the VWAP SR would strengthen the bullish stance, paving the way for a charge toward the range's upper limits.
However, a failure to hold the midpoint may trigger a liquidity hunt and lower targets. Until a decisive breakout happens, get ready for more rotational price action within the established boundaries.
partnering with RWA
In a positive development, Hedera, a rival crypto, announced a key partnership with RWA. This alliance could potentially boost HBAR's price, but its impact on Sonic remains uncertain.
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- The resistance to Sonic's price rise is mounting due to the VWAP SR, the 0.618 Fibonacci level, and the value area high, all serving as significant barriers.
- Sonic's persistently low volume suggests a period of consolidation, making a breakout seem improbable.
- If Sonic were to lose its midpoint, it could potentially initiate a cascading move downward, targeting lower support levels.
- A strong reclaim of the VWAP SR would strengthen the bullish stance for Sonic, potentially propelling it towards the range's upper limits.
- A failure to hold the midpoint could trigger a liquidity hunt and target less explored liquidity pools.
- The impact on Sonic from Hedera's partnership with RWA remains uncertain.
- Experiencing a decisive breakout, either bullish or bearish, will determine the end of the current rotational price action within Sonic's established boundaries.
