Sonic spikes by 69% as bullish sentiments persists

• Sonic surged by 69.89% over the past week.
• While Sonic is experiencing strong bullish momentum, an analyst expects a correction.

Since hitting a low of $0.39 two weeks ago, Sonic [S]  has experienced a sustained upward momentum.

In fact, at the time of writing, Sonic was trading at $0.98. This marked a 25.07% increase on daily charts. Over the same period, the trading volume has spiked by 58.71% to $1.12 billion.

Equally, the altcoin has made gains on weekly and monthly charts, hiking by 69.89% and 47.99% respectively.

With the recent price pump, key stakeholders have been left talking. Inasmuch, popular crypto analyst Ali Martinez has suggested a potential correction, citing TD sequential.

Market sentiment suggests…

In his analysis, Ali Martinez posited that Sonic has hit the target from its head and shoulder pattern.

With this realized, the TD sequential has flashed a sell signal on the 4-hour charts.

Source: X

With this signaling sell, investors are highly likely to turn to profit-taking, resulting in downward pressure on Sonic as selling pressure rises.

Based on this analogy, we could see Sonic prices start declining after sellers enter the market. The question is whether the analysis above could hold or buyers will absorb any selling pressure.

What Sonic’s charts suggest

According to AMBCrypto’s analysis, Sonic is still experiencing a strong upward momentum with buyers dominating the market.

Source: TradingView

The rising MACD line indicates upward momentum. This suggests that short-term price action is strengthening relative to the long-term price.

With the MACD line above the signal and histogram, it confirms strong bullish momentum and signals the potential for the uptrend to continue.

This strengthening upward momentum suggests that buyers are active in the market, driving prices up through organic demand. This is confirmed by the rising RSI, which has spiked to 77.

While the RSI is rising, it has yet to hit extremely overbought zones where a correction might occur. Therefore, there’s still some room for growth before a substantial drop.

Source: Coinglass

Looking further, Sonic’s Open Interest (OI) has spiked by 44.26% to reach a new high of $152.28 million.

When OI rises while prices are also rising, it implies that investors are bullish, thus opening more long positions. Therefore, new investors continue to enter the market, reflecting strong demand for S.

Source: Coinalyze

Finally, Sonic’s aggregated funding rate AVG has remained positive over the past two days. This implies that longs are bullish and willing to pay a premium fee to hold their positions.

Sonic is still experiencing strong bullish sentiments, positioning S for more gains on its price charts. Therefore, in the short term, the uptrend could continue.

However, for this bullish outlook to hold, S must stay above $0.9. A breakout above here will see the altcoin hit a two-month high of $1.0.

Conversely, if it fails to hold these levels, the correction anticipated by Martinez will occur, and S could drop to $0.844.