Sonic (S) Price Sees 16% Drop — Rebound to $1 Still a Pipe Dream
Key Takeaways
- Despite support from exchanges for the upgrade, Sonic’s price has decreased to $0.57.
- On-chain data shows that a major resistance lies between $0.65 and $0.67 price levels.
- With the altcoin price below the key EMAs, the S token could shed more of its value.
Sonic (S), previously known as Fantom (FTM), completed its transition last week with several exchanges supporting the upgrade. For many months, the crypto community thought the anticipated event was going to be bullish for the price.
However, that does not appear to be the situation as Sonic’s price has decreased by 16% in the last seven days. For some, this steep decline offers a rare chance to scoop the altcoin at cheaper prices.
But despite the high hopes, several indicators reveal that the rally back to $1 remains fraught with challenges
Sonic Has Yet to Exit Long-Standing Correction
The Sonic token’s 16% decline has dragged the price to $0.57. But, according to on-chain data, this might not be the end of the cryptocurrency’s correction.
One indicator that supports this bias is the In/Out of Money Around Price (IOMAP).
The IOMAP identifies whether holders are profiting, breaking even, or incurring losses on their current By doing this, the tool provides insights into key support and resistance levels.
Typically, the higher the volume of tokens in unrealized losses, the stronger the resistance. On the other hand, the higher the volume in profitable positions, the stronger the support.
According to data from IntoTheBlock, Sonic’s price could encounter significant resistance between the $0.65 and $0.67 price range.
At this level, about 1,450 addresses have accumulated a total of 7.87 million Sonic tokens, indicating strong selling pressure. This accumulation surpasses the token volume held between $0.54 and $0.58, indicating that the altcoin could find it challenging to break through this resistance.
Thus, if the S token fails to attract significant buying pressure, the value might not experience a sustained rally toward $1 anytime soon.
S Price Prediction: Recovery Not in Sight
On the 4-hour timeframe, the Sonic token price has slipped below the 20 and 50-period Exponential Moving Averages (EMA).
The EMA)is an indicator that helps assess whether the price of an asset is trending upward or downward. By using recent price movement, the EMA can forecast if the next direction will be northward or otherwise.
When the EMA is below the price, it means the trend is bullish. But in the case, the S token price is below the 20 EMA (blue) as well as the 50 EMA (yellow).
Beyond this, the 50 EMA has crossed above the 20 EMA, reinforcing the bearish bias. Known as a death cross, this position of the indicators might accelerate the Sonic price downtrend.
If that is the case, then S price might drop to $0.50 soon. However, if buying pressure around Sonic gets intense, the altcoin could experience a bullish reversal.
In that scenario, the token’s value might climb to $0.78 at the 0.786 Fibonacci level.
A highly bullish market condition could extend this target, and in that case, S price might rally above $1.
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