Sonic Surges 2%: Large Investors Boost Holdings, Resistance Looms

Sonic's price has surged over 2% in the past 24 hours, reaching $0.72, which could be a continuation of its 35% bullish rally over the past month. This move may potentially recover its 10.40% loss from the past week. Large investors controlling more than 1% of the asset’s total supply have increased their holdings in the past 48 hours, acquiring approximately $1.16 million worth of Sonic, leading to a corresponding price increase. This activity suggests that their trading volume surge alongside a price jump is a "buy" signal.

However, Sonic's move is facing resistance as it trades within a tight range of $0.72 to $0.73, which could impact its rally. This resistance has formed as the asset breaches a major descending channel, historically a key catalyst for significant price rallies. To assess whether Sonic is likely to break through this level, an analysis of its in/out of the money around price (IOMAP) data was conducted. The data shows notable buying interest at Sonic's current price level, with 3.61 million FTM traded between $0.71 and $0.73, suggesting that the current sluggish movement could be due to price accumulation, potentially setting the stage for a breakout.

If the accumulation phase ends and the asset breaches resistance, Sonic could rally by 33.94% to approximately $0.99, nearing the $1 level it last traded at in December 2024. According to Coinglass, spot market traders have been accumulating Sonic over the past week, purchasing $21 million worth of the asset between the 24th and 30th of February. This is reflected in the exchange netflow turning negative, indicating that traders are not just buying Sonic, but also moving it into private wallets for long-term holding, reducing the likelihood of selling during brief market shakeouts.