Sonic Plummets 10% Amid Bearish Breakout and Heavy Long Liquidations

Sonic, an altcoin, experienced a significant 10% drop in value, raising concerns about further losses. The decline was accompanied by a bearish breakout and a decrease in open interest, indicating growing selling pressure and market uncertainty. Traders exited their positions, leading to a weakened sentiment and a 10.19% drop in the last 24 hours. At the time of writing, Sonic was trading at $0.5305, suggesting that it may struggle to regain its bullish momentum in the short term.

Sonic’s recent price action confirmed a bearish breakout, falling below a key support level. This movement indicated growing selling pressure, with traders expecting more losses. The chart underlined the resistance level at $0.6128, while the immediate support lay at $0.5145 and $0.4479. If selling pressure remains strong, Sonic could drop further to test lower price levels. Additionally, the Relative Strength Index (RSI) stood at 54.61, suggesting that Sonic was neither overbought nor oversold at press time. Hence, this leaves room for more downside unless strong buying support emerges.

Sonic’s social dominance and social volume have both declined, suggesting reduced retail interest. At the time of writing, social volume stood at 431, while social dominance dropped to 3.74%. This downtrend indicated that discussions around Sonic have been fading. A drop in social engagement often hints at weakening momentum, making a price recovery less likely. If retail traders lose interest, Sonic may struggle to regain bullish momentum. However, if sentiment shifts and activity increases, a reversal could still be possible.

Liquidation data showed that long positions have been taking a significant hit. On 7 March, $190.91k in long liquidations occurred, compared to just $26.26k in short liquidations. This imbalance meant that bullish traders may be getting squeezed as the price declines. Among exchanges, Bybit recorded the highest long liquidations at $45.62k, followed by Binance at $115.5k. This data indicated that many traders were caught off guard by the bearish move. If long liquidations continue outpacing shorts, further downside may be inevitable.

Sonic’s bearish breakout, declining social interest, and heavy