"Sonic Surges 69.89% in a Week, Analyst Warns of Correction"

Sonic [S] has surged by 69.89% over the past week, marking a significant upward momentum in its price trajectory. This impressive performance has caught the attention of market stakeholders, with popular crypto analyst Ali Martinez suggesting a potential correction, citing the TD sequential indicator.

Sonic's price has been on an upward trajectory since hitting a low of $0.39 two weeks ago. At the time of writing, Sonic was trading at $0.98, representing a 25.07% increase on daily charts. The trading volume has also spiked by 58.71% to $1.12 billion over the same period. Additionally, Sonic has made gains on weekly and monthly charts, hiking by 69.89% and 47.99% respectively.

However, Martinez's analysis suggests that Sonic has hit the target from its head and shoulder pattern, with the TD sequential flashing a sell signal on the 4-hour charts. This signals a potential sell-off, as investors may turn to profit-taking, resulting in downward pressure on Sonic as selling pressure rises. The question remains whether buyers will absorb any selling pressure or if the analysis holds true.

In contrast, AMBCrypto's analysis indicates that Sonic is still experiencing strong upward momentum, with buyers dominating the market. The rising MACD line suggests that short-term price action is strengthening relative to the long-term price, confirming strong bullish momentum and signaling the potential for the uptrend to continue. The rising RSI, which has spiked to 77, also confirms this bullish sentiment. However, there is still some room for growth before a substantial drop, as the RSI has yet to hit extremely overbought zones.

Furthermore, Sonic's Open Interest (OI) has spiked by 44.26% to reach a new high of $152.28 million, indicating that investors are bullish and opening more long positions. This reflects strong demand for S, as new investors continue to enter the market. Additionally, Sonic's aggregated funding rate AVG has remained positive over the past two days, implying that longs are bullish and willing to pay a premium fee to hold their positions.

In the short term, Sonic's uptrend could continue, given the strong bullish sentiments. However, for this bullish outlook to hold, S must stay