Sonic has broken below the point of control, accelerating bearish momentum toward a major confluence zone. Price now approaches the value area low, where a potential bottoming structure may decide its next move.
Summary
- Sonic closed below the point of control, confirming bearish continuation toward the value area low.
- The current support zone aligns with the yearly low and high-timeframe structure.
- Reversal requires a bottoming pattern and rising volume to regain bullish momentum.
The recent candle close below the point of control (POC) has triggered a strong bearish continuation in SONIC’s (Sonic) price, bringing it rapidly toward the value area low. This region is especially significant as it aligns with the yearly low and a key high-timeframe support near $0.26. The failure to reclaim the value area high and the rejection at daily resistance now serve as major signs of weakness in the market structure.
Key technical points:
- Bearish Breakdown Confirmed: Price closed below the POC and failed to reclaim the value area high.
- Confluence at Value Area Low: This level aligns with the yearly low and a key high-timeframe support.
- Volume Profile Weakness: Low demand at highs, followed by bearish volume as price declines.
Sonic’s inability to reclaim the value area high marked a clear shift in sentiment. After a failed bullish retest, price was unable to close above the key resistance level on a daily basis. This breakdown, combined with a weak volume profile, revealed the absence of sustained buying interest and hinted at a deeper retracement, now confirmed as price descends toward major support.
The current move finds price pressing into a region that holds multiple technical significances: the value area low, the yearly low, and the high-timeframe support around $0.26. This confluence makes the level a potential pivot point for the next market move. However, bearish volume inflows at this level suggest sellers remain active, and any reversal attempt must be supported by a shift in both structure and volume.
For a reversal to materialize, Sonic may need to sweep the yearly low and form a bottoming structure, such as a double bottom or bullish divergence, before any sustainable rally can begin. Until that happens, the overall structure remains bearish, and price may continue consolidating or seeking lower liquidity zones. Should a base form at current levels and volume begin to rise with demand, a rotation back toward the point of control or even the all-time high could become a viable scenario.
What to expect in the coming price action
Sonic is now testing the value area low, a key support zone that may determine the next phase of price action. A bottoming pattern around this region could spark a reversal toward higher levels, while continued bearish volume could drive price through support and extend the current downtrend.
