The price movement analysis of Sonic indicates that the price has fallen below the control point, confirming the bearish trend and moving towards support.
Confirmation of Bearish Trend
The price closing below the point of control (POC) has confirmed the continuation of the bearish trend for Sonic, pushing it rapidly towards the value area low, signaling market weakness.
Technical Significance of Support Zone
The current support zone aligns with yearly lows and key higher timeframe support levels, creating a potential pivot point for the next move, though low demand and high bearish volume indicate active selling.
Outlook and Possible Price Movement Scenarios
For an upward trend to develop, Sonic will need to form a bottoming structure, such as a double bottom or bullish divergence, potentially signaling the start of a sustainable rally. Until this happens, the overall structure remains bearish, with the price likely continuing towards lower liquidity levels.
Sonic is currently testing a crucial support zone, and its future movement will depend on whether it can create a positive structure at current levels or continue dropping below.
