Sonic Rebound From $0.24 Low Fails To Shift Bearish Trend

Sonic has recently experienced a significant rebound from its fresh yearly lows, but the overall market structure remains bearish. The cryptocurrency dropped to a new yearly low near $0.24 before staging an impulsive rebound, sparking speculation about whether this move signifies a major bottom or just another short-lived bounce in a bearish market.

The sharp rally into the value area low shows some signs of life, but the broader structure remains tilted bearish. For this rally to evolve into a longer-term reversal, key levels must be reclaimed, and volume must confirm the intent. The yearly low at $0.24 is a critical level that must hold to form a higher low and base for a potential reversal. Reclaiming the critical resistance level at $0.40 would break the bearish market structure, signaling a potential trend shift.

Currently, the market structure is still bearish, characterized by lower lows and lower highs. The volume profile remains weak, and strong volume is needed to validate any breakout. Sonic’s drop to $0.24 marked a key inflection point, representing a final flush if the level holds. The recent rally into the value area low is technically significant but lacks the volume and structure needed to confirm a sustained trend shift.

For Sonic to build a convincing bottom, it must hold above $0.24 and begin forming higher lows on lower timeframes. A clean reclaim of $0.40 would be the first meaningful sign of structural change, breaking the series of lower highs that have defined the current downtrend. Volume remains a concern, as the bounce appears driven more by a short squeeze than by genuine accumulation. The market had been heavily skewed to the downside, and Sonic’s sharp rise likely forced a flush of short positions. This type of move, while aggressive, doesn’t inherently signal trend reversal unless followed by sustained buying interest and structural improvement.

If Sonic consolidates above $0.24 and begins printing higher lows with increasing volume, the case for a mid- to long-term reversal strengthens. Until then, traders should be cautious in interpreting this move as anything more than a technical relief bounce. The next few weeks will be critical for Sonic. Holding above $0.24 is essential to form a base. If the price consolidates and reclaims $0.40 with rising volume, it could signal the start of a broader trend reversal. Otherwise, bearish pressure may resume.