- Sonic battles resistance, breakout needed before long positions become realistic.
- $S stuck in bearish channel despite bounce as volume fails to support rally.
- Sonic teams with Kaito, rewarding top X users with exclusive S token airdrop.
Sonic ($S) remains in a steep descending channel, and the signs of any trend reversal have not been confirmed yet. Alpha Crypto Signal believes that the token has recently used the lower channel support to bounce, and the upper channel seems to reject it at this stage.
The daily chart indicates that there has been a clean resistance preventing the upward movement. In this way, $S has not been able to jump above the bearish channel. It is trading around the $0.3075 price level, below the 9-day EMA of $0.3115 and the SMA 50 of $0.4191. Such levels indicate that the market is still exhibiting bearish momentum.
Source: X
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Long Position for $S Is Risky Until Breakout Is Confirmed
The inability of $S to move through the resistance level means those hoping to enter long positions must remain cautious until the breakout is confirmed.
Though there are recent green candles, bulls have been unable to work around the resistance levels in terms of volume. The reversal off the support had provided encouragement yet the rejection is suggesting caution. Long positions will not be possible until Sonic breaks, and holds above this channel, which is probably at $0.32.
The structure, which has been identified by Alpha Crypto Signal, indicates that a breakout could alter sentiment over a short term. Yet, volume remains weaker and price below major moving averages, so the confidence that a breakout can occur is currently minimal.
Alternatively, in the case of rejection the token will find the next area of support close to $0.27 towards the bottom of the channel. A correction below that figure can be an indication of a stronger decline.
Sonic and Kaito Join Forces, Reward Top X Voices With Exclusive S Airdrop
Any positive move up must penetrate the trendline and the EMA with a lot of conviction. Traders watching this setup are advised to remain patient until a confirmed breakout occurs.
Earlier, Sonic partnered with Web3 platform Kaito to enable more conversations around its S token. This move rewards users who actively share insights and push discussions about Sonic on X. The second season of the Sonic airdrop now includes “Yap points,” given to those creating quality content about Sonic’s decentralized finance features.
Users can track their progress on the Sonic Yapper Leaderboard and aim for a spot in the upcoming airdrop.
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