Home Altcoins News Sonic (S) Surges 31% from Record Low, Eyes Further Gains

Sonic (S) Surges 31% from Record Low, Eyes Further Gains

Sonic surge

Sonic (S), a lesser-known cryptocurrency, has made a significant rebound recently, climbing 31% from its all-time low just three days ago. Trading at $0.47, Sonic has experienced nearly 10% growth within the last 24 hours alone. This sharp reversal comes as traders saw an opportunity to capitalize on the dip, fueling renewed demand for the coin and pushing its price higher.

Rising Market Activity Fuels the Surge

Sonic’s market activity has notably increased, signaling the growing confidence of investors. According to Coinglass data, spot market inflows for Sonic totaled $215,000, highlighting a shift in sentiment. While this figure might seem relatively modest, it represents a significant turnaround compared to the consecutive days of outflows previously observed. Increased inflows typically indicate a rise in demand for an asset, which can trigger further price momentum.

Moreover, Sonic’s open interest is also on the rise. Open interest, which refers to the number of outstanding derivative contracts (such as futures and options) that have yet to be settled, rose 33% within 24 hours, now standing at $41.05 million. When open interest increases during a rally, it typically reflects more capital entering the market, confirming the conviction of traders who are betting on price increases rather than closing positions.

Sonic’s Key Resistance Level and Price Forecast

Looking at the 12-hour chart for Sonic, the coin appears to be nearing an important technical level: the 20-day Exponential Moving Average (EMA). Since the start of February, this level has acted as resistance, preventing further price growth. If Sonic successfully breaks above this resistance, it could signal an extended upward trend. The 20-day EMA is a critical short-term indicator that adapts quickly to price shifts, providing traders with insight into potential price movements.

Should Sonic manage to break through the 20-day EMA, the next target for the cryptocurrency could be $0.59. This would represent a continuation of its rally, supported by growing investor confidence and demand. However, traders should also be mindful of the risks. If market conditions shift or if profit-taking starts to prevail, Sonic’s price could retrace back to the $0.33 level, where it would look for support.

Factors Driving Sonic’s Bullish Outlook

Sonic’s recent price recovery is underpinned by several factors, including growing investor interest and positive trading activity. The rising spot market inflows indicate an increase in demand, which is crucial for maintaining the altcoin’s momentum. The surge in open interest suggests a strong belief among traders that Sonic could continue its upward trajectory.

Additionally, the possibility of a breakout above the 20-day EMA brings the potential for more price action. If this resistance level is surpassed, it could further boost investor confidence and send the price toward $0.59, a significant jump from its current value. However, it’s important to note that any significant shifts in the broader cryptocurrency market or sudden changes in market sentiment could trigger a price pullback.

Conclusion: Sonic’s Future Potential

While the outlook for Sonic appears promising with its recent price surge, traders should remain cautious and keep an eye on key levels and market trends. A successful breakout above the 20-day EMA would validate the current rally and may drive the price higher. However, with the volatile nature of cryptocurrency markets, investors should always be prepared for potential reversals or profit-taking phases.

As Sonic continues to recover, its performance over the next few days will likely determine whether the current momentum can be sustained or if a pullback is in store. For now, all eyes are on Sonic’s ability to break above the 20-day EMA and maintain its position above the $0.47 mark.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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