Sonic (S) Looking to Break Bearish Structure as Project Opens $80M Airdrop to US Users

Key Takeaways

• Sonic confirms 200 million airdrop eligibility for U.S. users, marking a rare scenario in the country.
• Despite the announcement, Sonic’s price remains subdued at $0.40, down 22% over the past month.
• The MACD crossover and $0.38 support point to a potential breakout above the descending channel.

Sonic users residing in the U.S. will be eligible to claim a portion of the 200 million S tokens airdrop, the project confirmed on Tuesday, June 3. Despite this milestone,  one of the first legally available airdrops in the U.S.,  Sonic’s price has shown little reaction.

At press time, the altcoin trades at $0.40, a 22% decline over the past month.

However, this downtrend does not necessarily mean further losses. As this analysis shows, several indicators suggest that the announcement could serve as the catalyst Sonic needs to stage a recovery.

Sonic Prints Bullish Divergence

The Sonic announcement was a welcome development for U.S.-based users. For years, many crypto projects have excluded American participants from airdrop eligibility due to regulatory uncertainty and concerns over potential sanctions.

However, this latest disclosure suggests that things might begin to change amid the pro-crypto stance associated with Donald Trump’s administration.

“You’re in. U.S. residents are now eligible for the ~200M S airdrop! A milestone moment as our airdrop becomes one of the first to reach the U.S. legally and expands access to S,” The project disclosed .

Even though Sonic’s price failed to react positively to the announcement, the technical setup shows that recovery could be close. According to the 4-hour chart, CCNA observed a bullish crossover on the Moving Average Convergence Divergence (MACD).

With support at $0.38, Sonic’s price might be able to break past the upper trendline of the descending channel. If validated, the altcoin’s next target could be to flirt with the $0.45 level.

However, a closer look at the chart shows that another resistance lies at $0.54. Furthermore, traders also appear to expect Sonic to begin to rebound soon.

This insight comes from the funding rate, which is the cost of maintaining an open position in the derivatives market. A positive funding rate means that long positions (buyers) pay short positions (sellers), indicating bullish sentiment.

On the other hand, a negative funding rate shows that shorts are paying longs, indicating a bearish outlook. Based on Santiment data, Sonic’s funding rate is currently positive.

Combined with the recent Sonic price decline, this suggests a potential recovery could be close.

S Price Analysis: No Clear Rally Yet

Meanwhile, analysis of the daily chart reveals that the potential uptrend has not been confirmed yet. However, after several days of red bars, the Awesome Oscillator (AO) has flashed a green histogram bar.

This AO measures momentum by comparing the recent price action with the historical performance. When the reading is positive, momentum is bullish.

On the other hand, a negative reading indicates bearish momentum.  As of this writing, the AO reading is negative, but the green bar indicates that the momentum could switch from bearish to bullish.

Should this trend improve, Sonic’s price might climb toward $0.68, especially if bullish sentiment rises ahead of the upcoming airdrop. If demand for the cryptocurrency intensifies, the token could rise to $0.96 near the 0.618 golden ratio.

However, if the Sonic airdrop becomes a “sell the news” event, this forecast might not happen. In that case, the S token price might drop toward $0.32.