Sonic token price forms a confirmed double bottom around $0.16 but faces resistance at the 50-day moving average, keeping the market cautiously neutral until a breakout occurs.
Summary
- Double bottom confirmed at $0.16 with bullish engulfing candles.
- 50DMA and POC act as key resistance levels.
- Breakout above resistance could target $0.26; failure risks retest of $0.16.
Sonic (SONIC) has established a confirmed double-bottom pattern at the $0.16 level, signaling potential for a bullish reversal. However, price action now faces a critical test at the 50-day moving average (50DMA), which has capped momentum since the last capitulation event. The market’s next directional move hinges on whether Sonic can reclaim this level and maintain volume support above it.
Sonic token price key technical points
- Double Bottom Formation: The $0.16 region has been confirmed as a double bottom with two bullish engulfing candles.
- Major Resistance: Price is currently facing resistance at the 50-day moving average, a level that has rejected multiple rallies.
- POC and Volume Confluence: The nearby Point of Control (POC) reinforces this region as a high-volume barrier.
From a technical standpoint, Sonic has successfully defended the $0.16 region, where two consecutive bullish engulfing candles confirmed the double-bottom pattern. This setup suggests buyers are attempting to regain control following the prolonged downtrend. However, despite the formation, Sonic now trades directly into a significant resistance cluster formed by the 50DMA and the nearby POC.
This confluence zone has been suppressing price action since the previous capitulation week, and so far, bullish volume has not been sufficient to force a breakout. As long as Sonic remains below the 50DMA, the market structure continues to lean bearish.
A clean daily close above this level would represent a key structural shift, potentially triggering an accelerated move toward the next major resistance around $0.26.
On the other hand, failure to reclaim the 50DMA and the POC could invalidate the double-bottom structure. In that scenario, Sonic would likely revisit the $0.16 region to retest support. If this level fails to hold, the bullish reversal thesis would be negated, opening the door for deeper corrective movement.
The current price behavior highlights a neutral-to-cautious market phase. Sonic’s recent recovery attempt lacks strong trading volume, suggesting conviction remains limited among buyers. For a sustainable reversal, volume inflows must increase significantly alongside a decisive reclaim of the 50DMA and the value-area high.
What to expect in the coming price action
If Sonic reclaims the 50DMA and sustains above it, a swift rotation toward the $0.26 resistance becomes likely, as this level represents the next high–time frame supply zone. Conversely, rejection at the 50DMA would likely send price action back toward $0.16 for another retest.
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