The cryptocurrency market is staging a notable rebound after last week’s volatility that pushed Ethereum (ETH) to a low of $3,839 before recovering to trade near $4,200. Both Bitcoin (BTC) and ETH are up by around 2% today, boosting overall sentiment across altcoins, including Sonic (S).
S is back in the green with modest gains, but more importantly, its chart is hinting at the formation of a bullish reversal structure that could dictate the token’s next move.
Falling Wedge Pattern in Play
On the daily chart, Sonic appears to be carving out a falling wedge — a pattern that typically signals weakening bearish momentum and the potential start of an upside reversal.
The recent downtrend began after S was rejected from the wedge’s upper trendline near $0.3521 on Sept 12, triggering a sharp decline. This selloff dragged the token to the wedge’s lower boundary near $0.2219, which has since held as a critical support level.
Currently, S is trading around $0.2518, showing signs that bulls are stepping in to defend this area and attempting to build upward momentum.
What’s Next for S?
If Sonic continues to respect the wedge’s base and strengthens further, the next logical step would be a move toward the wedge’s upper resistance trendline. A confirmed breakout and retest above this barrier could open the doors for more gains, with the 200-day moving average (MA) at $0.3943 acting as the first major target.
However, if the token struggles to reclaim higher resistance levels and faces rejection, it could slip back toward the lower wedge boundary for another retest before attempting a rebound.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.