- Sonic rallied 19.4% and now tests key mid-range resistance at $0.356.
- Indicators show mixed signals, with short-term strength but weak overall buying pressure.
- A breakout above $0.36 needs confirmation, or traders risk falling into a bull trap.
Sonic — S , has fired up the charts with a powerful 19.4% rally in the past 24 hours. Buyers stormed in after the asset bounced cleanly from the $0.3 support zone, which has held firm for a month. That bounce wasn’t just lucky—it reflected strong belief from bulls aiming to push prices higher. As the price heads toward the mid-range resistance, excitement builds, but so does a lurking threat that could catch traders off guard.
A Range Full of Traps and Temptation
For over a month, Sonic has traded between $0.3 and $0.418, forming a well-defined range . On July 18, bulls attempted a breakout, but sellers shut that down with sharp rejection. Still, the On-Balance Volume (OBV) showed quiet but steady buyer dominance throughout the month. This hidden strength keeps the bullish narrative alive. At the time of writing, Sonic hovered near the $0.356 resistance level, which marks the mid-point of the current range. This level now serves as a key battleground.
The 4-hour chart reveals a bullish structure and strong demand over recent sessions. Volume picked up across lower timeframes, suggesting that buyers have not run out of steam yet. These signals give reason to believe that another push higher could follow. However, other indicators suggest caution. While the OBV points to increased buying pressure, the Chaikin Money Flow (CMF ) remains below the +0.05 mark. This weakness gains support from the Money Flow Index (MFI), which earlier showed limited buying power.
Liquidation Zones and Hidden Risks
To make sense of the split signals, analysts turned to the liquidation heatmap . It showed that liquidation levels near the $0.35 mark were swept in recent hours. This movement cleared the path toward the next target at the $0.36–$0.362 zone. That zone acts as a magnetic region, likely to attract prices before turning into resistance. If prices reach that area, they could face a harsh rejection unless enough long liquidations build underneath.
Early signs of such buildup appeared near the $0.34 level, but more confirmation is needed. A clean move past $0.36 followed by a retest as support could provide a strong buying opportunity. That setup would allow for a tight stop-loss and a well-defined risk. However, jumping in too early could spell trouble. A premature long entry might get wiped out by a fake breakout.
Likewise, opening a short position too soon could hurt, especially if Bitcoin climbs above $118.6k and lifts the broader market. Timing is everything in this kind of setup. Sonic has the momentum, but the road ahead is still filled with traps. Traders need to stay sharp, wait for confirmation, and avoid emotional decisions. The next move could offer profit—or punishment.
