Sonic Token Hits New Yearly Lows, But a Short-Term Rebound might potentially be on the Horizon
Sonic’s price has plummeted to $0.22,marking new yearly lows. This drop confirms a notable bearish shift, as the token fell below crucial support levels. However, extreme oversold conditions hint at a potential short-term bounce.
The recent decline broke through the point of control and value area low, triggering a strong bearish candle. This move has not been seen all year, signaling a clear deterioration in market sentiment.
despite the heavy downside, oversold conditions suggest that a technical relief rally may emerge as selling pressure shows signs of exhaustion. to drive U.S. expansion despite current prices, Sonic Labs is overhauling its tokenomics model.
Sonic Price Key Technical Points:
- Sonic Token has confirmed new yearly lows at $0.22 after losing key supports.
- Extreme oversold conditions raise the probability of a short-term bounce.
- A reclaim of $0.26 is critical for momentum to rotate toward $0.31.
The market outlook for Sonic (S) has shifted sharply bearish following a decisive breakdown in structure. Price action collapsed below both the point of control (POC) and the value area low (VAL), triggering a strong bearish engulfing candle that sent the token down to $0.22.
Sonic’s most recent move lower represents a major technical breakdown. After failing to hold above the point of control and the value area low, sellers pushed the market to fresh yearly lows, confirming a bearish market structure.
The large bearish engulfing candle that marked this move highlights the strength of downside momentum and reinforces the current negative sentiment surrounding the asset. However, the aggressive sell-off has also brought the market into extreme oversold conditions. Historically,when Sonic reaches such levels,short-term relief rallies often materialize as sellers become exhausted and buyers step in to exploit discounted prices. These oversold rallies typically provide temporary equilibrium in the market, allowing for rebounds back toward near-term resistance levels.
for Sonic, the first test of strength will be reclaiming $0.26. This level represents an crucial structural resistance that, if broken, could fuel a rotation higher toward $0.31. Past oversold rallies on Sonic have produced strong recoveries, which adds weight to the possibility of another relief move in the current setup.
Nonetheless, the broader picture remains firmly bearish. Price is still trading near lows, and without confirmation of a market-structure shift, the downtrend remains dominant. Consolidation at these levels without a clear reclaim of resistance would suggest that bearish pressure is likely to persist.
What to expect in the coming price action: Sonic is currently oversold but still entrenched in a bearish market structure. A reclaim of $0.26 is key to opening the door for a relief rally toward $0.31. Until then, caution is warranted as downside risks remain in play.
