Sonic Price Weakens as Bearish Structure Persists: Is a Deeper Correction Ahead?

Sonic's price remains under bearish pressure, showing continued lower lows and weak bullish volume. This raises the likelihood of a deeper correction towards significant high-time-frame support levels.

Key Takeaways

Sonic is experiencing sustained bearish pressure, with successive lower lows.
Weak bullish volume raises concerns about further declines.
Key support level at $0.10 is crucial for potential recovery.
Without structural improvements, a deeper correction may be on the horizon.

Sonic token price continues weakness suggests deeper correction.

Sonic's recent price activities indicate a sustained bearish trend, with the market showing limited signs of recovery. The asset maintains its structural weakness, leading to concerns that Sonic may be preparing for another downturn. Despite Sonic Labs' CEO's ongoing efforts to enhance long-term adoption through a utility-focused growth strategy, the current market conditions suggest a challenging path ahead.

Current Market Analysis of Sonic

Sonic price weakens as bearish structure holds: Deeper correction ahead? - 1 SONIC (4H) Chart, Source: TradingView

Struggling for Stability

Sonic is currently facing frequent breakdowns within lower time frames. The price chart highlights a series of lower lows and lower highs, confirming the ongoing bearish trend. At present, the price is testing the low end of its value area, which has temporarily held. However, the absence of significant bullish volume implies that weakness still characterizes the asset.

The fundamental high-time-frame support level at $0.10 is critical for Sonic to maintain. Historically, this area has served as a significant support point during previous corrections. While there is a possibility of short-term rallies from this level, any rebound backed by low volume comes with the risk of forming another lower high, rather than a significant reversal.

If such a situation occurs, the chances increase that Sonic will revisit and perhaps drop below this critical support level. A breach below this point could lead the price towards the previous swing low, cementing a new yearly low and extending the overall bearish trend. This scenario is particularly daunting amid increasing criticism from Polygon and Sonic Labs co-founders, who assert that the Ethereum Foundation has not adequately focused on layer-2 development, adding to the ecosystem’s uncertainties.

From a market-structure lens, Sonic, despite new leadership, is clearly bearish. A confirmed higher low has yet to be established, nor is there significant evidence of a trend shift. Lacking these vital indicators, the likelihood of continued downward movement remains strong.

Future Price Action Expectations

If Sonic cannot reclaim critical structural levels and continues to register lower highs, the probability of a deeper correction towards a new yearly low becomes increasingly likely. Maintaining the $0.10 support is essential, but without a change in volume and structural dynamics, bearish conditions are likely to continue in the short term.