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Sonic Price Prediction – Levels to Look Out for as Liquidity Dries Up!
The cryptocurrency market has been witnessing a tumultuous ride lately, with many altcoins experiencing a drastic decline in their value. Sonic (S) is no exception to this trend, having plummeted by an astonishing 20.37% over the past day alone. This massive sell-off is largely attributed to the drying up of liquidity across both chain and protocol levels.
As the sentiment among traders remains overwhelmingly bearish, it’s essential for investors to stay informed about potential price movements and set realistic expectations. Let’s dive into a detailed analysis of Sonic’s current market position and identify key levels that could impact its future trajectory.
Recent Market Behavior
Over the past day, Sonic has been subject to relentless selling pressure, resulting in a massive decline. The altcoin’s value plunged by 20.37%, with traders seemingly rushing to exit their positions. This is further exacerbated by the stark negative sentiment among derivative traders, who have been betting against the asset’s potential recovery.
In addition to this, trading volume has surged significantly, reaching $44.02 million – a whopping 417.19% increase over the same time period. The sheer magnitude of this sell-off indicates that short positions are dominating the market, with short traders banking on further declines in Sonic’s value.
Current Chart Patterns
With Sonic’s price currently hovering around 0.45, it is crucial to monitor key levels for potential reversals or continuations of the downtrend. One such level to keep a close eye on is the demand zone situated between 0.38 and 0.42. This area has historically served as a strong support point in past instances, allowing Sonic’s price to rebound.
However, if this critical level fails to hold, we could see a more severe decline towards $0.318. This next target would indicate whether the asset is set for further declines or begins to recover from its current precipitous drop.
In conclusion, it is essential for investors and traders alike to remain vigilant of Sonic’s price movements as liquidity continues to dwindle across various levels. As always, we recommend setting realistic expectations and engaging in thorough risk assessments before making any investment decisions.
Source: https://ambcrypto.com/sonic-price-prediction-levels-to-look-out-for-as-liquidity-dries-up/
