Sonic price remains under heavy selling pressure as an aggressive downtrend continues to dominate market structure. Consecutive lower highs and lower lows now place yearly support at risk of breaking.
Summary
- Aggressive downtrend confirmed by lower highs and lower lows
- Price trades near yearly low below 0.618 Fibonacci extension
- Lack of bullish volume signals continued downside risk
The Sonic (S) token continues to trade within a firmly established bearish trend, with price action showing little evidence of stabilization. Recent market behavior reflects persistent seller control, as rallies into resistance repeatedly fail and lead to further downside continuation.
With momentum weakening and bullish participation absent, the market now approaches a critical inflection point where a new yearly low may soon be confirmed.
Sonic price key technical points:
- Trend Structure: Clear sequence of lower highs and lower lows confirms strong downtrend.
- Key Level: Price trading near yearly low below the 0.618 Fibonacci extension.
- Market Bias: Lack of bullish volume suggests continuation of bearish momentum.
Sonic’s corrective phase has evolved into a sustained and aggressive downtrend characterized by repeated bearish retests and continuation moves lower. Each attempt at recovery has been met with selling pressure, reinforcing resistance zones and preventing any meaningful trend reversal. This pattern of failing rallies highlights the dominance of sellers and reflects a market environment where confidence remains weak.
From a technical perspective, the sequence of lower highs and lower lows is one of the clearest signals of bearish market structure. Instead of forming consolidation or accumulation patterns, Sonic has continued to trend downward with consistent momentum. Resistance levels that previously acted as support have flipped decisively into supply zones, creating a cascading effect where price struggles to regain higher ground.
Currently, Sonic trades near the absolute yearly low region while remaining positioned below the 0.618 Fibonacci extension, a level often associated with trend continuation during strong directional markets. A confirmed breakdown below this region would establish a new yearly low and validate the ongoing bearish projection.
Such price behavior typically signals continuation rather than exhaustion, particularly when volume does not show signs of aggressive buying interest.
Volume analysis further strengthens the bearish outlook. Throughout the decline, bullish volume has remained muted, suggesting limited demand at current prices. Reversal scenarios generally require expanding buy-side participation and structural reclaim of key resistance levels. At present, neither condition is visible, indicating that the market has yet to enter a recovery phase.
Market participants should also consider the psychological impact of prolonged downtrends. Extended periods of selling often reduce trader confidence, encouraging defensive positioning and short-term selling on rallies. Until Sonic can reclaim a meaningful high timeframe resistance level, upside attempts are likely to remain corrective rather than impulsive.
This comes as Sonic Labs CEO Mitchell Demeter outlines the key steps layer-1 blockchains must take to remain competitive, underscoring the broader strategic challenges facing the sector amid persistent market weakness.
Despite the weakness, markets rarely move in straight lines indefinitely. Short-term relief bounces may occur as oversold conditions develop; however, such moves would likely function as temporary pauses within the broader bearish structure unless accompanied by strong volume expansion and structural shifts.
From a broader market structure standpoint, Sonic remains trapped in a persistent downtrend where liquidity continues to build below price. As long as resistance levels remain intact, the path of least resistance favors further downside exploration.
What to expect in the coming price action
Unless Sonic reclaims high timeframe resistance and attracts meaningful bullish volume, the probability favors continuation toward new yearly lows. The prevailing bearish structure suggests downside pressure will persist, with any rallies likely serving as corrective retests rather than a confirmed trend reversal.
