Sonic token has caught the glance of traders after a highly effective bullish pass from toughen. With tag now consolidating under key resistance, the next breakout can be upright around the corner—here’s what the chart is telling us.
Sonic (S) token has confirmed some critical momentum now now not too lengthy ago, catching the eye of traders with a highly effective bullish engulfing candle. With tag now grinding in opposition to key technical ranges, the following few moves can be wanted in figuring out whether or now now not we leer continuation—or signs of a reversal.
Key parts:
- Solid bullish engulfing candle from the tag field low and day after day toughen at $0.39
- Ticket consolidating upright under point of control, hinting at vertical accumulation
- $0.52 liquidity target aligns with 0.618 Fibonacci and VWAP resistance
The fresh tag tear on Sonic Token has been notably impulsive, initiating with a solid bullish engulfing candle that fashioned appropriate on the tag field low. This space additionally aligned completely with day after day toughen around $0.39, giving the pass critical technical weight.
The surge was as soon as accompanied by a rising quantity profile, confirming buyer hobby and quiz at that stage. Following the frenzy, tag now finds itself consolidating come the point of control—in general a signal that the market is constructing a unpleasant, now now not reversing.
Doable vertical accumulation
If Sonic continues to exchange above the point of control, this will probably probably signal the presence of vertical accumulation. This roughly tag tear, characterised by bigger lows on the lower timeframe within a compact trading vary, usually ends in extra bullish continuation.
One critical field to leer is the resting liquidity around $0.52. This stage stands out as an untapped excessive and a magnet for tag, particularly with the 0.618 Fibonacci stage and VWAP resistance stacked upright above it.
Reaching that $0.52 space makes both technical and psychological sense. The theory of liquidity suggests that markets behold out areas of uncollected orders. Once tag had taken the lower-facet liquidity and bounced now now not easy, the next logical pass is to kind out the highs.
That eavesdrop on additionally traces up with the tag field excessive of the fresh vary, which capability that a faucet of that stage would total a fleshy vary rotation from low to excessive. If Sonic starts distributing around that resistance field, that would maybe well well stamp the launch of a longer consolidation part.
Factual now, the chart is easy showing signs of power. There are no definite indicators of weak point, and vertical accumulation patterns are inclined to proceed till exhaustion. While it’s trim to be cautious come resistance, prematurely shorting Sonic with out a definite rejection can be unstable. For now, the bulls are as a lot as flee—and the $0.52 target remains in play till confirmed otherwise.
