Sonic (S), which has suffered a 23% price decrease over the last seven days, appears to be nearing the end of this correction. This development occurred after CCN observed a change in trend, as Sonic’s price flashed a green candlestick on the daily chart.
As of this writing, the S token’s value is $0.48, far below the $1 target it seemed ready to hit some weeks back.
While the altcoin might not rally quickly to that milestone, this analysis explains why an extended decline is unlikely.
On the daily chart, Sonic’s price formed a head-and-shoulders pattern between Feb. 10 and March 10.
A head and shoulders pattern signals a potential trend reversal. It typically indicates a transition from an uptrend to a downtrend and features three peaks.
As seen below, the higher peak (head) is flanked by two smaller, similarly sized peaks (the “shoulders”). This pattern eventually led to the S token’s price of $0.43.
However, today, the token seems to have invalidated that bearish outlook as it has created a higher low. On Feb. 8, Sonic’s swing low was around $0.38.
By March 12, it was $0.43, but today, that value has increased to $0.48, suggesting that Sonic’s price might have escaped going through another decline.
Besides this, data from IntoTheBlock also seems to agree with the thesis. Using the In/Out of Money Around Price (IOMAP), the on-chain analytic platform shows major support for Sonic’s price near $0.45.
For context, the IOMAP employs the volume of tokens accumulated at a certain price range to spot support or resistance. When the volume in unrealized losses (red) is higher, it indicates resistance.
On the other hand, a large cluster in the money (green) signifies support. As shown below, approximately 1,290 addresses hold over 650 million Sonic tokens in unrealized profits—outpacing the number of tokens in loss between $0.48 and $0.55.
Sonic In/Out of Money Around Price | Credit: IntoTheBlock
Per the short-term outlook, the daily chart shows that the Money Flow Index (MFI) has refrained from dropping below the neutral line. This position indicates strength for Sonic’s price since selling pressure appears to be fading.
If the MFI reading continues to follow this path, the altcoin could be gearing up for its next leg. Regarding the potential targets, Sonic’s price might fail to drop below the 0.786 Fibonacci level.
If that is the case, the next target for the token could be $0.57. As stated above, this aligns with the signs shown by the IOMAP.
However, if selling pressure intensifies, the altcoin’s value might not experience such a rebound. In that scenario, the value could sink toward the $0.30 mark.
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.
