Sonic (S) Golden Cross Confirms Strength After 20% Jump — Further Gains Ahead

Key Takeaways

• Sonic’s price climbed from $0.42 to $0.54, after it broke out from a falling wedge pattern.
• The 12-day EMA crossed above the 26-day EMA, forming a golden cross amid rising demand.
• A break above $0.59 could push Sonic toward $0.96, but rejection could drag it to $0.42.
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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%.

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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.

In that scenario, the S token price might decline to $0.42. If demand fails to pick up at this level, the value might sink to $0.32.