The cryptocurrency market is showing signs of stabilization after a prolonged downtrend that followed the late 2024 rallies. Among the assets benefiting from this potential recovery, Sonic (S) has emerged as a standout, surging by 16% after rebounding from a crucial support level. This recent price action suggests the possibility of a bullish reversal, which may help Sonic (S) recover from a significant 34% decline over the past 90 days.
Double Bottom Pattern: A Classic Bullish Reversal Signal
A closer look at the daily chart for Sonic (S) reveals the formation of a double bottom pattern, a well-established bullish reversal structure. This pattern often indicates the end of a downtrend and the onset of a new upward trend. It occurs when the price tests a key support level twice without breaking lower, followed by a move higher, signaling that sellers are losing control.
Recently, Sonic (S) faced resistance at the $0.98 neckline, which led to a pullback to the $0.40 support zone, marking the second bottom of the pattern. However, this level held firm, and the price has since rebounded to $0.52, suggesting renewed buying interest.
Further supporting the bullish outlook, the Moving Average Convergence Divergence (MACD) indicator is showing early signs of a bullish crossover, historically signaling a shift in momentum favoring buyers. If this pattern continues, Sonic (S) could attempt to retest the $0.98 neckline resistance. A successful breakout above this level could lead to a strong rally toward the next major resistance zone at $1.38–$1.46, representing a potential upside of 178% from the current price.
Can This Pattern Confirm a Full Recovery?
While the rebound from the key support level and the formation of the double bottom pattern are promising, for a full trend reversal to be confirmed, Sonic (S) must break decisively above the $0.98 neckline resistance with strong volume. If this occurs, it would signal a more sustained recovery, setting the stage for further price appreciation in the coming weeks.
