Sonic, previously known as FTM, experienced a 46% volume drop as prices retraced from $0.99. However, the retest of support levels at $0.8 and $0.73 was expected to be followed by another price move higher. The cryptocurrency had shown bullish strength over the past two weeks, reversing early February losses and pushing towards $1. The $0.8 level was being retested as support, with momentum and volume signaling a buyer’s market. It was anticipated that Sonic would continue its uptrend, supported by a strong buying pressure.
The 4-hour chart of Sonic indicated a strong uptrend, with the price forming higher highs and higher lows since breaking above the $0.6 resistance level. The recent upward price move had been driven by exceptional buying volume, particularly over the past week. The DMI of Sonic confirmed the uptrend, with both the +DI and ADX lines above 20. The OBV also showed strong gains, indicating a significant increase in volume. A potential retracement below $0.75 could weaken momentum but would not necessarily reverse the bullish market structure.
The liquidation heatmap revealed significant liquidity levels below $0.8 and around $0.95-$1, indicating potential price targets in the coming days. Traders were advised to be cautious of a drop below $0.8 but not to consider it a signal to go short. The $0.71-$0.73 range was expected to function as a lower timeframe demand zone. Above $1, the $1.4 level was identified as the next notable resistance level. It was important to note that the information provided did not constitute financial advice but rather the writer’s opinion on Sonic’s price movement.
In conclusion, Sonic showed signs of a strong uptrend with bullish momentum and buying pressure driving prices higher. The retest of support levels and the confirmation from the DMI indicator suggested that the cryptocurrency was likely to continue its upward trajectory. Traders were advised to monitor key support and resistance levels, such as $0.8 and $1, for potential price movements. While a retracement below $0.75 could weaken momentum, it was not expected to reverse the overall bullish market structure. The liquidity heatmap provided insights into potential price targets, with $1.4 identified as the next notable resistance level. As always, caution and careful analysis were recommended when trading Sonic or any other cryptocurrency.
