Sonic (S) Breakout Gains Momentum — 70% Price Rally Could Follow

Key Takeaways

• Sonic (S) broke out from a descending wedge pattern.
• The price faces a critical resistance at $0.77-$0.90.
• Can S reach this resistance, and if so, will it reclaim it?

The S price struggled in 2025 but showed some bullish signs with a bounce on Feb. 3. It followed this by breaking out from a descending wedge eight days later.

The wedge had contained the price movement since the start of the year, so the breakout is a sign that the correction could be over.

Can S maintain its momentum after the breakout, and if so, where will it lead? Let’s find out.

Sonic Price Breaks Out

Sonic has fallen considerably since its 2024 high of $1.46 in December. The S decline was initially swift but became more gradual as the price created a descending wedge pattern. The downward movement culminated with a low of $0.32 on Feb. 3, leading to a bounce that is still ongoing.

On Feb. 11, the S price broke out from its descending wedge, indicating the correction was over. If this is the case, the next resistance will be between the 0.382-0.5 Fibonacci retracement resistance levels at $0.76-$0.90.

The wave count supports this possibility, showing a completed five-wave decline, often followed by a relief rally.

*Note: The Fantom chart is used instead of the Sonic one because of the availability of more price history.

Technical indicators are also bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have both generated bullish divergences, a sign that often precedes upward movements.

So, the daily time frame suggests the S price will increase toward at least the $0.76-$0.90 resistance area.

Relief Before New Lows

The long-term wave count confirms that the ongoing breakout will lead to a relief rally rather than kickstart a full-blown bullish trend reversal.

The count shows that FTM has been completing a complex W-X-Y-X-Z correction starting in October 2022. The correction inside an ascending parallel channel might have ended with the December 2024 high, which validated the channel’s resistance trend line.

If that is the case, the S price has now started a new five-wave downward movement that will lead to new lows.

However, wave one looks complete after the bounce (white icon) at the channel’s support trend line.

The ensuing increase could take Sonic to the channel’s midline, which coincides with the 0.382-0.5 Fibonacci retracement resistance area. Afterward, wave three will likely cause a breakdown that leads to new lows.

S Price Trend is Bearish

Sonic recently broke out from a descending resistance trend line, which has caused optimism about its future prospects. However, the long-term readings suggest this is simply a relief rally that will eventually be followed by another decline.

The reaction once the S price reaches the $0.73-$0.90 area can determine whether this is the case or if Sonic has started a bullish trend reversal.