Sonic token price has defended its yearly low at $0.22 under oversold conditions, setting the stage for a potential bullish rotation. A reclaim of the $0.26 resistance would confirm a failed auction and open the door for further upside.
Summary
- Bulls successfully defended the yearly low at $0.22.
- A reclaim of $0.26 would confirm a failed auction and shift momentum bullish.
- Key upside targets are $0.31 (POC) and $0.40 (VAH).
The Sonic token (SONIC) has reached a critical point in its price structure, with bulls stepping in to defend the yearly low during a period of heavy selling pressure. Market auction theory suggests that if buyers regain control above $0.26, the deviation from the yearly low could trigger a significant rotation toward higher resistance levels.
Adding to this, Sonic Labs is introducing new tokenomics to back its U.S. expansion and attract institutional adoption, adding a fundamental layer of support to the bullish case. With $0.31 and $0.40 standing as key technical barriers, the coming sessions will be decisive in determining whether the bullish defense will lead to a broader expansion.
Sonic price key technical points
- Yearly Low Defended: Bulls held $0.22, now confirmed as the yearly low.
- Key Resistance: $0.26 remains the immediate level that must be reclaimed to validate a failed auction.
- Major Resistance Levels: $0.31 (point of control) and $0.40 (value area high) are critical targets for any sustained rally.
Recent price action has shown Sonic trading in extreme oversold conditions, where bears attempted to extend losses but failed to push the token below $0.22. This level now represents the yearly low, forming a strong base for potential bullish continuation. Market structure suggests that a reclaim of the $0.26 resistance would be a turning point, effectively confirming a failed auction in which sellers could not establish new lows.
The $0.26 threshold is crucial because it represents both a psychological and technical pivot. A clean acceptance back above this level would invalidate the bearish breakdown attempt and shift momentum back in favor of the bulls. Should this occur, attention will shift to the point of control at $0.31, a major supply area where previous trading volume was concentrated.
If Sonic can close decisively above $0.31, demand confirmation would be established, signaling that buyers are prepared to drive price action higher. This move would likely lead to a rotation toward the value area high at $0.40. From the perspective of market auction theory, such a move would represent a complete rotation from value area low to value area high, reinforcing the bullish narrative.
Structurally, the defense of the yearly low highlights the willingness of buyers to absorb selling pressure at critical levels. When combined with a potential reclaim of resistance levels, the technical picture favors a scenario where momentum could accelerate rapidly, particularly if broader market sentiment remains supportive.
What to expect in the coming price action
If bulls reclaim $0.26, it would confirm a failed auction and significantly increase the probability of a bullish expansion toward $0.31 and $0.40. Failure to hold above $0.26, however, could leave Sonic vulnerable to renewed pressure at the yearly low, which remains the ultimate line of defense.
