Sonic price struggles to sustain bullish momentum post-rebrand | Credit: Derek Fenech
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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
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.
Sonic In/Out of Money Around Price | Credit: IntoTheBlock
Thus, if the S token fails to attract significant buying pressure, the value might not experience a sustained rally toward $1 anytime soon.
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.
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.
