Sonic (Prev. FTM) Key Ascending Support Bounce Could Trigger Bull Phase

Sonic (S), formerly known as Fantom, shows signs of a potential trend reversal after a prolonged correction. The higher timeframe analysis suggests the completion of a five-wave Elliott Wave pattern, while the lower timeframe reveals an ongoing wave structure indicating a possible retracement before a continuation of the uptrend.

Sonic Price Analysis 

The daily chart of Sonic (S) suggests that the asset has completed a five-wave Elliott Wave cycle, reaching a high of approximately $1.45 before initiating a correction. The correction has unfolded in a classic A-B-C pattern, with the price recently finding support around the 0.786 Fibonacci retracement level at $0.43 on Feb. 10

This area has historically acted as a strong demand zone as it followed an ascending trendline dating from October 2023.

A key observation is the formation of a long-term ascending trendline, which has supported the price action multiple times, including the most recent dip. This suggests that Sonic (S) could be at the early stages of a potential recovery phase.

Additionally, the Relative Strength Index (RSI) on the daily timeframe has exhibited bullish divergence, indicating that selling pressure is weakening and buyers are stepping in. The RSI bounced from oversold conditions, which historically precede trend reversals.

Key Fibonacci retracement levels indicate that for a sustained recovery, Sonic must reclaim the 0.382 level at $0.95. If the price manages to break above this level, the next significant resistance is near the 0.236 Fibonacci retracement at $1.14, aligning with a previous structural high.

Sonic Price Prediction

On the 1-hour chart, Sonic (S) is developing an impulsive five-wave move, suggesting the end of a local uptrend. We are currently likely seeing the development of wave (v) with more upside expected in the short term to a high of $0.657 in the next following days. 

Following this, a corrective A-B-C structure should form, with price action potentially targeting the 0.5 Fibonacci retracement level at $0.514 or the 0.618 level at $0.482. A deeper retracement toward $0.38 remains possible if selling pressure intensifies.

If we see the immediate uptrend continuation after the descending channel break followed by a 0.5 to 0.618 Fib retracement, that will indicate that the bullish momentum is starting to intensify.

The price would in that case make a 76% recovery from its recent low and form a higher base on the expected downturn, showing that buyers are willing to step in sooner.

The wave count indicates that the recent impulse could be the beginning of a larger bullish cycle. If the correction holds above the key support levels, Sonic (S) is likely to initiate a new impulsive wave. The next major upside target for wave (v) aligns with the 1.618 Fibonacci extension at $0.92, followed by the 2.0 extension at $1.01.

For confirmation of continued upside, Sonic must break above the recent high of $0.65, which aligns with previous resistance. Failure to hold the $0.48 support would invalidate the bullish structure and may result in further downside.

Key Levels to Watch

• Immediate Resistance: $0.65 (local high)
• Key Resistance: $0.85 (1.272 Fibonacci extension)
• Major Resistance: $0.92 (1.618 Fibonacci extension)
• Immediate Support: $0.514 (0.5 Fibonacci retracement)
• Critical Support: $0.482 (0.618 Fibonacci retracement)
• Invalidation Zone: Below $0.38 (downside risk increases