Key Takeaways
- Sonic may have completed its macro-corrective phase.
- Wave (iii) could target $0.72 on the breakout.
- $0.44 support is crucial for bullish validation.
Sonic (S), formerly known as Fantom, has recently completed a long WXY corrective structure and is now testing key resistance levels.
Price action shows promising signs of a bullish reversal, contingent on breaking through descending resistance.
On lower time frames, impulsive subwaves suggest the start of a new motive sequence, but confirmation remains essential.
Sonic Price Analysis
The 4-hour chart shows Sonic entered a prolonged corrective phase marked by a W-X-Y pattern, following a macro five-wave impulse that peaked at $1.475 on Dec 16.
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The final leg of this correction, wave Y, bottomed at $0.37 on April 7.
After bottoming, the price formed a higher low above the support trendline, indicating the broader uptrend remains intact.
The downtrend was confined within a descending triangle, and the price is now challenging the upper boundary near the 0.786 Fibonacci retracement at $0.531.
A break above this confluence would indicate the end of correction and the beginning of wave (iii) toward $0.728 (0.618 Fib) and beyond.
The 4-hour Relative Strength Index (RSI) has climbed from oversold levels, hinting at building bullish momentum.
The broader structure supports the idea that the corrective phase has concluded or is nearing completion, especially given the overlapping but contracting wave formations, a typical ending pattern.
Failure to hold the $0.44–$0.46 support could invalidate this setup, sending the price back toward the critical macro support near $0.36 or even $0.28 if sentiment weakens drastically.
Sonic Price Prediction
On the 1-hour chart, Sonic (S) appears to have completed a smaller degree five-wave move up from the April 7 low, labeled as wave (i).
This was followed by an ABC correction completing wave (ii), finding support in the historically strong demand area in the $0.46–$0.475 zone.
If this structure holds, the next move could be an explosive wave (iii) targeting the $0.60–$0.72 zone.
There are two potential paths forward: an immediate breakout above the descending trendline or a deeper pullback before continuing higher.
RSI has rebounded off the 30 level and shows a bullish divergence on the 1-hour time frame.
This suggests a local bottom is in, increasing the probability of a wave (iii) extension.
Key resistance lies at $0.531 (0.786 Fib), and a break above it would confirm the bullish scenario.
If rejected here, look for a potential reaccumulation before another attempt to break higher.
Key Levels to Watch:
- Major Support: $0.440 (historical horizontal support).
- Immediate Resistance: $0.531 (0.786 Fib retracement).
- Breakout Confirmation: Sustained move above $0.531 with increasing volume.
- Invalidation Level: Break below $0.440, especially with high volume.
- Fractal Watch Zone: $0.72–$0.86 (potential wave (iii) target).
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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