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Sonic Price Prediction – Levels to Look Out For as Liquidity Dries Up!
The cryptocurrency market has been going through a tumultuous period lately, with many altcoins losing their value and investors becoming increasingly cautious. One of the assets that have taken a hit is Sonic (S), which has seen its price plummet by over 20% in the past 24 hours alone.
As liquidity dries up and selling pressure intensifies, it becomes crucial to identify key levels that could potentially be breached, providing valuable insights for investors on the next course of action. In this article, we will explore the current market conditions and provide a Sonic price prediction based on technical analysis.
Liquidity outflows have been rising over the past day, indicating mounting selling pressure across the market. This sentiment is particularly concerning among derivative traders, who are betting on further declines in the asset’s value. The trading volume has also surged by an astonishing 417.19% to $44.02 million, confirming the high level of selling activity in the market.
The current price action has placed Sonic at a critical juncture, as it teeters on the edge of a crucial support level between 0.38 and 0.42. This region has previously served as a strong demand zone for the altcoin, with past instances demonstrating its effectiveness as a buy zone. A failure to hold this level would be a significant red flag, indicating further losses ahead.
On the flip side, if Sonic manages to find support at these levels and rebound, we may see a temporary reversal in the downtrend. However, it’s essential to note that such a move would likely be short-lived, given the overwhelming bearish momentum currently dominating the market.
Moving forward, any breach of this demand zone could lead to an extended slide towards $0.318, which would further compound losses for investors holding long positions. Conversely, if Sonic manages to hold its ground and maintain its current support level, we may be on the cusp of a potential turnaround.
In conclusion, it’s essential for investors to closely monitor Sonic’s price action in the coming hours and days. As liquidity continues to evaporate, any decisive move beyond the 0.38-0.42 range could have significant implications for the asset’s trajectory.
Source: https://ambcrypto.com/sonic-price-prediction-levels-to-look-out-for-as-liquidity-dries-up/
