Sonic is currently flashing critical red-alert signals on the chart, with price action breaking below the yearly swing low and hovering at a key decision point.
The market structure remains decisively bearish, and unless bulls step in at this final support, a breakdown toward $0.12 becomes the dominant scenario. Sonic is trading at its lowest level of the year, having breached the previous swing low, a significant structural support. This places SONIC (SONIC) at a high-risk inflection point where bulls must defend or risk triggering a full-blown bearish expansion. While a swing failure pattern could still be confirmed with a rapid recovery, the current trend, marked by lower highs, lower lows, and weak volume, paints a fragile picture.
Key technical points
- Swing Low Break Signals Weakness: Price is now trading below key yearly support, increasing downside risk.
- $0.49 Resistance or $0.12 Breakdown: A recovery could target $0.49, but a failure to hold current levels may trigger a bearish move to $0.12 (Fibonacci extension).
- No Volume Support Yet: Bullish volume remains absent, reducing the probability of a reversal without significant demand.
Price action on Sonic has continued to deteriorate, with the asset now closing below the prior swing low, establishing a new yearly low. This is a strong bearish signal, especially given the consistent pattern of lower highs and lower lows that has dominated the chart in recent weeks.
The current zone is a make-or-break level. A bullish recovery from here would form a swing failure pattern (SFP), where price reclaims the broken low and rallies. If confirmed with a spike in volume, this would likely trigger a move back toward the $0.49 resistance, a level that has previously held on higher timeframes.
However, if the price continues to close weakly below this last line of defense, the probability of a further breakdown sharply increases. The next major target lies at $0.12, based on the Fibonacci extension of the latest bearish swing. Currently, volume is not supporting a bullish reversal. There’s been no sign of meaningful buy-side participation, and without that, the path of least resistance remains to the downside.
What to expect in the coming price action
Sonic is at a critical inflection point. Bulls must reclaim the broken support zone quickly to prevent a deeper collapse. If support fails, expect price to target the $0.12 region in the coming weeks. Until volume returns and structure shifts, bearish momentum remains in control.