Sonic [S] has experienced remarkable upward momentum recently, surging 69.89% over the past week. From a low of $0.39 just two weeks ago, the altcoin has gained significant traction, now trading at $0.98. This sharp rise has raised considerable interest, especially as the trading volume has increased by 58.71%, reaching $1.12 billion.

Despite the impressive gains, the current price levels have led to mixed opinions among analysts. While the altcoin is experiencing strong bullish momentum, some experts are predicting a potential correction in the near future.

Bullish Momentum Continues

Sonic’s price action on both the weekly and monthly charts has been impressive. Over the past seven days, the altcoin has surged by nearly 70%, and its gains have been sustained, with the altcoin also seeing a 47.99% increase on the monthly charts. These numbers suggest that Sonic has managed to maintain momentum even amidst broader market fluctuations.

The technical indicators are confirming the bullish sentiment. The MACD (Moving Average Convergence Divergence) line, a popular tool for measuring momentum, is currently above the signal and histogram, reinforcing the idea of continued upward movement. The Relative Strength Index (RSI) has also spiked to 77, further indicating that Sonic is still in a strong upward trend, though it is getting closer to levels that might suggest overbought conditions. However, there’s still room for growth before it hits overbought territory.

Furthermore, Open Interest (OI), a key metric that tracks the number of open positions in a market, has seen a significant rise of 44.26%. As of the latest data, OI stands at $152.28 million, signaling strong investor confidence and a willingness to open long positions. This suggests that more traders are betting on the altcoin’s price continuing to rise, further supporting the bullish outlook.

A Potential Correction?

Despite the positive indicators, some analysts are cautious about the possibility of a pullback. Popular crypto analyst Ali Martinez has pointed out that Sonic may be approaching a critical point. According to Martinez, the altcoin has hit a target set by its head and shoulders pattern, and the TD Sequential indicator has flashed a sell signal on the 4-hour charts. This could signal that the bullish rally is nearing its peak, and profit-taking from investors might create downward pressure on Sonic’s price.

Should this sell signal come into play, there is a high likelihood of a correction as traders start to sell their positions, potentially driving prices lower. The key question is whether the market’s buying pressure will be strong enough to absorb any selling activity or if the correction will take place as predicted.

Price Outlook

Sonic’s immediate price movement will depend on whether it can hold the support at $0.9. If the altcoin can stay above this level, there is a good chance it will push toward the $1.0 mark, a key psychological level and a two-month high. A breakout above this level would further fuel the ongoing bullish sentiment, attracting more investors and solidifying Sonic’s position in the market.

On the other hand, if Sonic fails to hold the $0.9 level, a correction could occur. If this happens, the price could retrace to around $0.844, which would mark a significant pullback from its recent highs.

Conclusion

Sonic’s recent surge has caught the attention of the crypto community, with many watching closely to see if the altcoin can continue its ascent toward the $1 mark. While technical indicators suggest strong bullish momentum, the potential for a correction cannot be ignored, and market participants will need to keep a close eye on price movements and key support levels. As the altcoin’s short-term trajectory remains uncertain, traders will have to weigh the risks of continued upside versus a potential pullback.