Sonic (S) Price Stabilizes Near $0.50 After 15% Drop — Consolidation Before Breakout

Key Takeaways

• Despite dropping to $0.50, Sonic has maintained higher highs and lows within an ascending channel.
• Data shows support at $0.45, where 1,440 wallets hold over 655 million tokens, stronger than the nearby resistance.
• RSI bounced from below 30 to near 50, indicating cooling momentum with potential for another upswing.

In the past seven days, Sonic’s (S) price has fallen by 15%, from $0.60 to $0.50.

However, despite the decline, it appears that S price has found its footing and is stabilizing near $0.50.  Historically, when this happens, the altcoin experiences a breakout to the upside later.

But in this situation, Sonic’s price might have to trade sideways for some time before the breakout occurs.

Sonic Trades in Tight Range

On the daily chart, Sonic’s price trades within an ascending channel. Despite the 15% drop, S has maintained its trend of higher highs and higher lows, indicating that the altcoin could keep its bullish momentum.

Sonic has held the support at $0.50, particularly. But it might still have the resistance at $0.62 to contend with.

Despite the overhead resistance, CCN observed that the green line of the Supertrend is below Sonic’s price. When the green line is below the indicator, the trend is bullish and has strong support.

On the other hand,  if the red line is above the price, it indicates strong resistance. Since it is the former, the S crypto is likely to hold the support at $0.50.

Due to this position, Sonic is unlikely to face an extended correction. Instead, the cryptocurrency might soon keep trading within a tight range.

Support Over Resistance

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) supports this outlook.

The IOMAP identifies key support and resistance zones by analyzing where holders sit on unrealized profits or losses.

Currently, the strongest support lies around $0.45, where 1,440 addresses are holding over 655 million tokens in unrealized gains. That cluster outweighs the volume between $0.51 and $0.58, the primary resistance.

Given this setup, Sonic’s price appears well-positioned to push past the barrier and climb above $0.58.

S Price Analysis:  More Consolidation Ahead

On the 4-hour chart, the Relative Strength Index (RSI) shows that Sonic’s price was overbought last week. The RSI measures momentum using the speed and size of price changes.

On May 17, the RSI reading was below 30, reinforcing the thesis that the cryptocurrency was oversold.  But today, the RSI is close to the 50.00 neutral point.

Since it has yet to break the signal line, Sonic’s price will likely trade between $0.50 and $0.60. However, if buying pressure increases, this target could be higher.

In that scenario, Sonic’s price could rise as high as $0.75 at the 0.382 Fibonacci level.

On the contrary, if S loses the support at $0.50, this altcoin’s value could decline toward $0.36.