$SONIC 's counterattack skyrockets, is it a takeoff or a failure before the key resistance level?
This Sonic has been bouncing around for several months, with its price fluctuating wildly. It was previously overlooked by the market, but in the last 48 hours, it has surged over 11%, suddenly becoming the focus of attention.
Now the price is stuck at the key resistance level of $0.3604, and many traders are pondering whether this is just a rebound to catch their breath, or if it truly indicates the start of a major upward trend?
Sonic's overall trend has been quite bearish, with prices continuously hitting new lows since the second quarter. However, this recent rebound is quite strong, pushing the price above the key resistance level, suggesting that the pattern might be changing.
If this bullish momentum can be maintained, it might signal the beginning of a reversal. Moreover, the trading volume of circulating tokens has significantly increased, indicating that more tokens are moving in the market, and retail investors and large fund players may have renewed interest or adjusted their positions.
However, the bubble chart has given us a warning. Although trading volume has increased, as of the time of publication, the bubble chart for Sonic's spot trading volume shows a decline in enthusiasm. Compared to earlier this week, the aggressive market positions are not as strong anymore.
So, even if the market structure seems to be improving, some traders are still hesitant to invest heavily, after all, Sonic's performance has been quite poor over the past few months.
Historically, the futures market tends to react to price fluctuations faster than the spot market. Given the current situation with Sonic, these changes seem to indicate a rather optimistic outlook for the future.
So, how will Sonic move next?
If the bulls are strong enough to help Sonic break through the current resistance level, the next target would be in the range of $0.4076 to $0.5438, as these price points have previously pushed the price back in late May and early June.
If the trading volume can continue to keep up and market sentiment remains stable, Sonic might be able to reverse its mid-term trend. But if it gets pushed back by higher resistance levels, a short-term correction might be needed.
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