The crypto market has experienced a sharp decline of over 7% today, leading to widespread losses across various altcoins. Sonic (prev. FTM) price has followed this trend, recording a 21% decline as selling pressure intensifies. At writing, Sonic sits at $0.5204, reflecting its downward trajectory.
Despite the ongoing correction, technical indicators suggest that a potential rebound could be on the horizon. Crypto expert Ali highlights this possibility, stating, “#Sonic $S could be primed for a rebound as the TD Sequential indicator flashes a buy signal on the 4-hour chart!” Traders are now watching closely for a possible shift in momentum.
What you'll learn 👉
Sonic Technical Analysis Points to a Potential Reversal
The 4H chart shows a strong downtrend, with consecutive bearish candles forming lower highs and lower lows. Sonic (S) price has been consolidating around $0.52, a level that could serve as short-term support. The TD Sequential Indicator has now reached the ninth consecutive bearish candle, a signal that historically suggests a possible price reversal or relief rally.
If the current support holds, a short-term bounce could be expected. But if the selling continues, a decline below $0.52 can see Sonic (S) testing the psychological $0.50 level. The next few sessions will be critical in determining whether this buying signal will trigger a reversal or additional selling in the future.
Sonic Market Sentiment and Key Levels to Watch
The general market correction has heightened bearishness, and therefore tracking major resistance levels is essential. If Sonic price can gain traction and clear $0.54, then this would signal the beginning of a reversal. However, a breakdown of existing support would witness sustained losses, with $0.50 serving as the next critical point.
Traders seeking confirmation of a trend direction shift will wait for a green closing candlestick at new highs, which may signal a direction change. Otherwise, the instrument remains open to further downward price action consistent with the prevailing trend in the market.
Market players are watching closely as Sonic price reacts to the overall market selling. Though the TD sequential buy signal shows potential for a reversal, this will need to be validated through price action and volume before the market can recover sustainably.
As volatility continues to increase, traders will watch intently the major levels of support and resistance to see their next signal in this volatile market.
Read Also: Sonic (S) Gets Faster Than Sui and Aptos to $1 Billion TVL
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