The recently rebranded Sonic Token (formerly FTM) is gaining traction among traders after a decisive bullish engulfing candle signaled a potential shift in market sentiment. With price action consolidating just below a major resistance zone, all eyes are now on whether Sonic can break higher—or if the rally will run out of steam.
A Strong Bullish Foundation
Sonic’s current move stems from a textbook bullish engulfing candle that formed right at the value area low and daily support around $0.39. This technical confluence sparked a notable rally, backed by rising volume—a key indicator of legitimate demand and growing interest from market participants.
The move is more than just a bounce. The volume profile confirms that smart money may be stepping in at this level, with the price now hovering near the point of control (PoC)—a zone often associated with accumulation rather than reversal.
Consolidation or Lift-Off?
The current structure on Sonic’s chart is indicative of vertical accumulation a pattern where price creates higher lows within a tight range. These formations often precede explosive continuation moves, especially when occurring beneath a key resistance zone.
Technically, Sonic is coiling below resistance a setup that typically resolves in the direction of the prevailing trend. This favors bulls, at least in the short term, as long as price stays above the PoC.
$0.52 Target in Focus
One level traders are watching closely is $0.52. This zone is significant for several reasons:
- It contains resting liquidity, making it a magnet for price action
- It aligns with the 0.618 Fibonacci retracement of the recent move
- It overlaps with the VWAP resistance and the value area high of the current range
In trading theory, markets seek liquidity, and with the lower-end liquidity now collected at $0.39, it makes sense that price could aim for the upper side. A move to $0.52 would complete a full range rotation, often a key milestone before a larger consolidation or trend shift.
Signs of Strength, But Caution Near Resistance
At present, there are no clear signs of weakness on the chart. Momentum remains strong, and price continues to trade constructively. However, the $0.52 level could act as a psychological and technical barrier, potentially triggering short-term profit-taking or distribution.
For now, shorting prematurely may be risky unless there’s a definitive rejection. Bulls remain in control until proven otherwise.
Sonic Token has flipped the script with a compelling technical breakout from support. As price coils below resistance, the setup favors continuation particularly if the market breaks above the PoC with strength. With a liquidity target at $0.52 in sight, traders are watching for confirmation of follow-through. For now, Sonic remains one of the more bullish charts in the mid-cap token space.
