- Sonic’s price action, reinforced by recent whale accumulation, pointed to a potential bullish breakout.
- Liquidity clusters suggest that a push toward $0.62 could be on the horizon.
Sonic [S] recently bounced off a strong demand zone, as seen by the long rejection wicks from recent candles.
This zone has acted as a springboard for price rallies in the past, and current technical activity is suggesting that the same trend may shape up again.
Buyers are coming in aggressively to counter the selling pressure with their increased buying volumes. The activity has stopped Sonic from further dips below the zone, a sign of growing confidence.
Source: TradingView
Whale activity aids price stability
Backing this price movement is a strong increase in whale accumulation. Notably, AMBCrypto’s analysis showed that large holders have been constantly placing big orders around the demand zone.
The tremors of these large orders are now being recorded on Sonic’s daily chart, further reinforcing the demand zone’s strength.
Such accumulation tends to precede significant price action, since whales tend to look to enter positions at key levels. Their purchases, combined with overall market interest, may provide a foundation for a bullish setup.
Source: CryptoQuant
Can Sonic rise to $0.62?
The alignment of this whale activity and demand zone of strength creates a bullish bias for Sonic. $0.62, which is above the press time trading level, remains a notable psychological and technical target.
The liquidation leverage cluster just above Sonic’s current trading range affirms the bullish bias. Liquidation pools tend to act as a magnet for price, especially when combined with rising market participation.
Thus, there could be a further accumulation of orders in the near term, which could be followed by further bullish momentum from the demand zone.
Source: CoinGlass
What to expect in the near term
If upside momentum is sustained, Sonic can see a clear breakout into $0.62 in the near term.
However, if the current demand zone fails to hold, the bullish setup could be invalidated and result in a continued bearish run.
