Key Takeaways
Sonic has faced a challenging 2025, falling over 40%. February seemingly triggered a reversal that led to a 200% increase, but the price created a lower high and resumed its downward movement.
By April 9, the S price returned to its yearly low. The same day, the Sonic team announced the Sonic Summit, which will take place in Vienna from May 6 to 8.
After creating a bullish candlestick, Sonic confirmed its $0.40 support area and is attempting to break out. Let’s look at the charts and see if this can be the start of a sustained rally.
Sonic Bounces at Support
The Sonic price has increased alongside a long-term ascending support trend line for over 540 days.
The price validated the trend line five times (green icons), most recently this week.
While the S price bounced, it hovers above the long-term support trend line.
Additionally, technical indicators suggest the trend is still bearish.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are below their bullish thresholds at 50 and 0, respectively.
So, the weekly time frame does not confirm whether the direction of the future trend is bullish or bearish.
Sonic’s Bullish Pattern
The daily time frame provides a more bullish Sonic prediction for several reasons.
Firstly, Sonic created a bullish, engulfing candlestick on April 9, confirming the $0.40 horizontal support area.
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Secondly, it created a possible double-bottom pattern relative to the March lows, though it has yet to confirm it.
The S price needs to break out from its descending resistance trend line to do so. Doing so could take S to the $0.60 horizontal resistance area.
Technical indicators also tend to be bullish. The MACD illustrates this perfectly by generating a bullish divergence (orange) and is close to making a bullish cross.
So, even though the long-term trend is unclear, the short-term one predicts a breakout and an increase to $0.60.
Bullish Pattern Plays Out
The Sonic price trades above long-term diagonal support but has yet to begin a significant bounce.
The short-term chart shows a bullish pattern, suggesting a breakout on the cards.
If one happens, the S price can reach the next closest resistance at $0.60.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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