Sonic Surges by 69.89%

While Sonic is experiencing strong bullish momentum, an analyst expects a correction.

Since hitting a low of $0.39 two weeks ago, Sonic [S] has experienced a sustained upward momentum.

At the time of writing, Sonic was trading at $0.98, which marks a 25.07% increase on daily charts. Over the same period, the trading volume surged by 58.71% to $1.12 billion.

The altcoin has also gained on weekly and monthly charts, increasing by 69.89% and 47.99% respectively.

With this recent price pump, key stakeholders have been discussing possible outcomes. Analyst Ali Martinez noted a potential correction, citing the TD Sequential indicator.

Market Sentiment Suggests…

In his analysis, Martinez posited that Sonic has reached the target from its head and shoulder pattern. This realization triggered a sell signal on the 4-hour charts.

Given this sell signal, investors may begin profit-taking, leading to downward pressure on Sonic as selling ramps up. The critical question is whether this analysis holds true or if buyers will absorb the selling pressure.

What Sonic’s Charts Suggest

According to AMBCrypto’s analysis, Sonic remains under strong upward momentum, with buyers dominating the market. The rising MACD line indicates increasing strength, suggesting that short-term price action is reinforcing the long-term trend.

With the MACD line above the signal and histogram, this confirms robust bullish momentum, indicating potential for continued uptrend. The rising RSI has spiked to 77, suggesting room for further growth before hitting overbought zones.

Additionally, Sonic’s Open Interest (OI) has surged by 44.26%, reaching a new high of $152.28 million. This rise, combined with increasing prices, implies that investors are optimistic and opening more long positions.

Finally, Sonic’s aggregated funding rate AVG has remained positive for the past two days, indicating that long positions are bullish and willing to pay a premium fee to maintain their positions.

Sonic is still enjoying strong bullish sentiment, setting the stage for further gains. In the short term, the uptrend could persist, provided Sonic remains above $0.90. A breakout beyond this point could see the altcoin hit a two-month high of $1.00. Conversely, if it fails to maintain these levels, the anticipated correction by Martinez may lead Sonic to drop to $0.844.