Sonic Nears $0.36 Resistance After 19.4% 24-Hour Surge

Sonic (S) is approaching the $0.36 resistance level, a key area that has shown conflicting price signals, leaving traders in a cautious stance as they await further clarity from market developments [1]. The cryptocurrency has experienced a 19.4% surge in 24 hours as of press time, following multiple tests of the $0.297 support level on July 29 and 30 [1]. Over the past month, S has remained range-bound between $0.3 and $0.418, with attempts at a breakout being met with rejection, including one on July 18 [1].

The on-balance volume (OBV) indicator suggests that buyers have had the upper hand in July, indicating some accumulation pressure [1]. However, the Chaikin Money Flow (CMF) has remained below +0.05, and the Money Flow Index (MFI) shows signs of weakness, suggesting that a move beyond the mid-range resistance at $0.356 might lack sufficient momentum [1]. This tension between bullish and bearish indicators creates uncertainty around the likelihood of a sustained breakout.

On the 4-hour chart, a bullish structure is evident, supported by high trading volumes in lower timeframes. The MFI reading of 76 underscores bullish strength, and the H4 chart diverges from the daily timeframe, pointing to a higher probability of upward movement [1]. However, the liquidation heatmap reveals a concentration of liquidation levels around the $0.35 area, with the $0.36–$0.362 zone acting as a potential attractor for prices [1]. This area could pull prices higher before turning into a barrier, provided that long liquidations build up below the current price level—something already hinted at near $0.34 [1].

Traders are advised to exercise caution. Entering long positions in anticipation of a breakout might lead to a failed trade, while waiting for a confirmed breakout could be a more prudent approach [1]. Similarly, short positions initiated too early could backfire, particularly if Bitcoin (BTC) experiences a bullish move past $118.6k [1].

In sum, the current price environment for Sonic reflects a tug-of-war between bullish optimism and bearish caution, with the $0.36 level emerging as both an opportunity and a potential trap for traders.

Source: [1] Sonic eyes $0.418 range high, but a more urgent threat looms (https://ambcrypto.com/sonic-eyes-0-418-range-high-but-a-more-urgent-threat-looms/)