The Sonic price is currently hovering around $0.07 on the higher time frame, with low volume increasing the risk of a collapse and the likelihood of a new yearly low if demand does not pick up soon. This bearish outlook is a result of the cryptocurrency’s sustained downtrend, which has been ongoing since it lost its Point of Control (POC).
Current Market Situation
Sonic (S) has been struggling to gain momentum, with its price trapped in a downtrend and unable to recapture key levels of value. The result is a slow but steady decline into a crucial high-time frame support area near $0.07. This level is now the most important zone on Sonic’s chart, as it has previously generated a boom and served as the main demand area.
The $0.07 level is the key support holding the price for the high time frame, but the weak volume around this support increases the risk of a breakdown. If Sonic continues to close around $0.07 without building upside momentum, the likelihood of support failing at some point increases. From a technical perspective, $0.07 serves as the last structural defense before Sonic could hit new yearly lows.
Technical Analysis
The main technical points of the Sonic price are:
- Sonic remains in a macroeconomic downtrend after losing its control point
- $0.07 is currently the key support holding the price for the high time frame
- Weak volume around support increases the risk of a breakdown and increases the likelihood of a yearly low
SUSDT (4H) chart, source: TradingView
Importance of Volume
Volume behavior is one of the most important signals for assessing when the price is trading at the support level. A strong support zone is usually accompanied by clear demand – buyers urgently intervene and drive the price higher with momentum. However, in Sonic’s case, the market shows the opposite, with weak and inconsistent upside volume.
This lack of buyer engagement indicates that the support zone is not strong, making it easier for sellers to push the price lower. Repeatedly closing the candle around support without volume expansion indicates that Sonic is not absorbing selling pressure enough to force a reversal.
Risk of Breakdown
If Sonic loses the $0.07 support, the probability of setting a new annual low increases sharply. This would confirm the ongoing bearish expansion and reinforce the macroeconomic downtrend structure. Once the market begins to accelerate, breakdowns of key support levels often occur quickly, resulting in a strong downtrend.
Improving the Outlook
For Sonic to mitigate the risk of a breakdown, the market must show clear signs of demand, including a strong bullish reaction candle starting at $0.07, increasing volume inflows during the upswing, reclaiming key resistance levels on a closing basis, and holding higher lows and moving structure higher.
Without these conditions, any upswing will likely remain corrective and vulnerable to selling. As long as Sonic continues to close near support without a significant increase in volume, downside risk remains elevated. A confirmed break below $0.07 could trigger a quick move to new yearly lows and reinforce the downward macroeconomic structure.
For the latest updates and analysis on the Sonic price, visit https://crypto.news/sonic-price-struggles-at-0-07-as-low-volume-signals-breakdown-risk/
