Sonic price is showing signs of recovery as the price took a bounce from $0.2267 support level.
Sonic’s price has surged by almost 8% in the last 24 hours. Moreover, the daily trading volume has surged by almost 75% suggesting increased buying interest.
Sonic price is showing signs of recovery after rebounding at an important support area at $0.2267. CoinMarketCap data shows that Sonic has increased by around 8% over the last 24 hours, and its daily trading volume has shot up by a staggering 75%, a sign that investors are once again interested in buying the cryptocurrency.
The Sonic price action on the daily chart indicates that the altcoin is trading at the price of $0.2599, trying to gain a foothold above the recent low. This support bounce indicates that buyers are intervening at these points, and this may be a temporary bottom of the cryptocurrency. This massive increase in volume that comes with this price increment is a good thing because it shows that the market is actually participating and not a shaky technical recovery.
What’s Next For Sonic Price?
Source: Tradingview
In terms of moving averages, Sonic has two important levels of resistance in the future. The 50-day exponential moving average (EMA) stands at $0.2933, and it is the initial significant obstacle to bulls. More importantly, the 200-day EMA of $0.4032 is a stronger resistance zone. The two moving averages are now serving as overhead resistance, and the price of Sonic is still trading below the two important technical indicators, which is an indication that the overall trend is still negative.
Nevertheless, momentum indicators are starting to draw a rosier picture. The Relative Strength Index (RSI) has entered the positive territory of 42.74, after being oversold. This trend indicates that the selling pressure is declining and the buyers are becoming more powerful. The MACD indicator is also performing well as the red histogram bars are turning to be lighter in colour, which means that bearish momentum is losing its strength. Moreover, sentiment indicators on the lower panel indicate recent white spikes that could indicate possible changes in market psychology.
To see a long-term bullish run happen, Sonic will need to overcome the 50-day EMA at $0.2933 and then attempt to break the 200-day EMA at $0.4032. A decisive break beyond these levels with good volume may lead to a new upward trend and may bring new buyers on board. These are critical levels that traders must observe until further improvement is noticed in the technical indicators.
