After a meteoric rise on launch day, Sophon (SOPH) is now experiencing a steep retracement, with technical indicators pointing to continued downward pressure. The token, which launched on May 28, initially surged from $0.030 to a high of $0.1108, catching traders’ attention with its explosive debut. However, that momentum has rapidly reversed, with SOPH now trading at $0.056, nearly 50% below its peak.
SOPH Breaks Key Support Amid Weak Technicals
The selloff intensified after SOPH lost support at $0.060, an important level where the token previously bounced on news of its Bithumb listing. The breakdown coincides with a fall below the 20 EMA on the 1-hour chart and a breach of the 0.618 Fibonacci retracement level at $0.05788, two technical zones often watched for trend continuation or reversal.
Now, the token is hovering near the 0.786 Fib level around $0.053, which has become the next critical support and potential area for a relief bounce. But unless SOPH can post a bullish confirmation candle or reclaim lost support levels quickly, the risk of further decline remains high.
Volume and Momentum Drop Sharply
SOPH’s trading volume has dropped significantly, with 24-hour volume falling by over 40% to $415 million, reflecting waning trader interest. RSI (Relative Strength Index), which was in overbought territory above 80 during the initial surge, has now fallen to 33, a bearish shift that underscores weakening momentum. The RSI is also trending below its moving average, compounding the downside risk.
Caution Ahead as Sentiment Weakens
SOPH’s decline mirrors a common post-launch pattern seen in the crypto space, where tokens experience high speculative inflows followed by sharp corrections. Without a meaningful catalyst or rebound in sentiment, SOPH may continue to test lower levels, particularly if volume and RSI remain suppressed.
Sophon’s initial rally has fizzled into a swift correction, with price action now threatening further losses. Key support at $0.053 will be critical in the coming sessions. Traders should watch for signs of reversal or capitulation as SOPH attempts to stabilize after its volatile debut.
