• Wow, Sonic has absolutely rocketed up by 69.89% in just the last week!
• But hold on, even with this incredible surge, one analyst is predicting a possible pullback for Sonic.

It’s been quite a ride for Sonic [S] lately! After touching a low of $0.39 about two weeks ago, this crypto has been on a consistent climb upwards, showing some real strength.

And get this – as we’re writing, Sonic is trading at $0.98! That’s a fantastic 25.07% jump just on today’s charts. Adding fuel to the fire, trading volume has also exploded, soaring by 58.71% to a massive $1.12 billion over the same period.

Looking at the bigger picture, this altcoin isn’t just having a good day; it’s been racking up gains across the board. We’re talking a hefty 69.89% increase over the last week and a solid 47.99% rise over the past month!

This recent price surge has definitely got everyone in the crypto space talking. Interestingly, prominent crypto analyst Ali Martinez has suggested we might see a bit of a cooling down soon, pointing to the TD Sequential indicator.

Market sentiment suggests…

Delving into his analysis, Ali Martinez highlights that Sonic has already hit the target projected from a head and shoulders pattern it formed.

Now, with this target reached, the TD Sequential indicator has actually flashed a sell signal on the 4-hour timeframe charts.

Source: X

With this sell signal flashing, it’s quite possible we’ll see investors starting to take profits. This could lead to increased selling pressure and potentially push Sonic’s price downwards.

So, could this analysis be right and will Sonic’s price take a dip as sellers step in? Or will buyers continue to pile in and absorb any selling pressure, keeping the upward trend alive?

What Sonic’s charts suggest

However, looking at AMBCrypto’s own analysis, the charts paint a slightly different picture. Sonic still appears to be riding a wave of strong bullish momentum, with buyers clearly in control of the market.

Source: TradingView

One key signal is the rising MACD line, which is a clear sign of strengthening upward momentum. Essentially, this means that the short-term price movement is gaining strength compared to the longer-term trend.

Furthermore, with the MACD line positioned above both the signal line and the histogram, it’s a strong confirmation of the bullish momentum and suggests that this uptrend could very well continue.

This increasing upward momentum really points to active buyers in the market, who are driving prices higher through genuine demand. This is further supported by the rising RSI (Relative Strength Index), which has jumped up to 77.

While the RSI is climbing, importantly, it hasn’t yet reached those extreme overbought levels that typically trigger a price correction. This means there might still be some room for Sonic to grow before we see a significant drop.

Source: Coinglass

Taking a broader look, Sonic’s Open Interest (OI) has also surged by a significant 44.26%, reaching a new peak of $152.28 million.

When Open Interest increases while prices are also rising, it’s a strong indication that investors are feeling bullish and are opening more long positions. Essentially, new money is flowing into the market as more investors jump in, showing solid demand for Sonic.

Source: Coinalyze

Finally, even looking at Sonic’s aggregated funding rate (AVG), it’s been consistently positive for the last couple of days. This shows that those betting on Sonic to go up (long positions) are not only bullish but are also happy to pay a premium to keep their positions open.

Overall, Sonic is clearly still enjoying strong positive sentiment, positioning it for potentially even more gains in the near future. So, in the short term, this upward trend definitely looks like it could continue.

However, for this optimistic outlook to remain valid, Sonic really needs to stay above the $0.9 mark. If it can break through and hold above this level, we could see it reaching a two-month high of $1.0.

On the flip side, if it can’t maintain these price levels, then the correction that analyst Martinez is anticipating could very well happen, potentially pushing Sonic down towards $0.844.