The Sonic token has attracted the interest of traders thanks to a strong bullish movement from a support level. With the price now stabilizing beneath significant resistance, a breakout could be imminent—here’s what the chart indicates.
Sonic (S) token has demonstrated remarkable momentum recently, drawing traders’ attention with a powerful bullish engulfing candle. As the price consolidates near key technical levels, the upcoming moves could be pivotal in determining whether we experience a continuation or signs of a potential reversal.
Key highlights:
- A pronounced bullish engulfing candle emerging from the value area low and daily support at $0.39
- Price stabilizing just below the point of control, suggesting potential vertical accumulation
- $0.52 liquidity target coincides with the 0.618 Fibonacci level and VWAP resistance
The recent trading activity of the Sonic Token has been notably dynamic, beginning with a strong bullish engulfing candle that formed at the value area low. This area also coincided perfectly with daily support around $0.39, lending substantial technical credibility to the move.
The price increase was matched by an uptick in volume, reinforcing buyer interest and demand at this level. Following the surge, the price is now coiling near the point of control—usually indicative of market consolidation rather than a reversal.
Possible vertical accumulation
If Sonic maintains trading above the point of control, it may signal the development of vertical accumulation. This type of price movement, identifiable by higher lows on shorter time frames within a tight trading range, often precedes bullish continuation.
A crucial level to monitor is the untested liquidity around $0.52. This price point stands out as a notable high and tends to attract the market’s attention, especially considering the presence of the 0.618 Fibonacci level and VWAP resistance just above it.
Targeting the $0.52 region makes both technical and psychological sense. The concept of liquidity suggests that markets tend to gravitate towards areas with unfulfilled orders. After seizing lower-side liquidity and sharply bouncing back, targeting the highs becomes a logical next step.
That target is also consistent with the value area high for the current range, meaning that reaching this level would represent a complete rotation from low to high. Should Sonic begin to stall around that resistance zone, it could signal the commencement of a prolonged consolidation period.
At present, the chart continues to exhibit signs of strength. There are no evident indicators of weakness, and patterns of vertical accumulation generally persist until there’s a clear exhaustion signal. While it’s wise to approach resistance with caution, entering short positions on Sonic without clear signs of rejection could be precarious. For the time being, the bulls are in charge—and the $0.52 target remains achievable until proven otherwise.