Sonic (S), formerly known by the FTM ticker, has surged 20%, over the past week. Last Monday, its price tumbled to a monthly low of $0.42, wiping out nearly all the gains it accumulated in February.
However, the recent surge to $0.54 suggests that Sonic could test higher resistance levels, driven by a bullish setup. Can Sonic leverage this pattern for further gains, or is a pullback next?
Sonic Flashes Bullish Signs
Between Feb. 8 and Feb. 21, Sonic’s price climbed from $0.40 and closed in on the $1 mark. But as soon as it attempted to hit the key threshold, it faced rejection.
This rejection forced an extended correction, which later drove the S token to $0.42, on March 10. A look at the daily chart shows that this decline triggered a falling wedge formation.
A falling wedge is a bullish pattern characterized by two converging downward trend lines: One marking lower highs and the other lower lows. After forming the pattern, the S token price broke above the descending trendline resistance at $0.51, invalidating the bearish outlook.
However, this was not the only signal of Sonic’s strengthening momentum. On the same chart, the Moving Average Convergence Divergence (MACD) flipped from a negative rating to a positive territory, indicating bullish momentum.
Furthermore, the 12-day Exponential Moving Average (EMA) (blue) crossed above the 26-day EMA (orange), forming a golden cross, a bullish signal suggesting that Sonic’s price could extend its rally.
On-chain data from Santiment also supports the case for a potential upswing. The analytics platform shows that social dominance, which was nearing a drop below 2%, has now surged to 3.57%.
This increase suggests growing market interest in Sonic, with more discussions surrounding the token. If social dominance continues to rise, the S token could soon break past $0.54.
S Price Analysis: Rounded Bottom Could Sustain Rally
Looking at the daily chart again, the Sonic price action seems to be forming a rounded bottom. The U-shaped pattern indicates a possible trend reversal.
While it is yet to be confirmed, S appears ready to jump to the key resistance at $0.68 at the 0.786 Fibonacci level. But for that to happen, the altcoin has to first break the $0.59 obstacle, which seems likely.
Once breached, Sonic’s price might rally to the 0.618 Fib level at $0.96. Should buying pressure increase at this point, the token’s value could rise to $1.35.
However, if the cryptocurrency fails to rise past the $0.59, this forecast might be rendered null and void.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
