Sonic price prints a bullish broadening wedge, is rally a possible?

Sonic price is consolidating within a bullish broadening wedge at the value area low. Sonic is positioned for potential upside if volume inflows confirm the current setup.

Sonic’s chart has been forming a bullish broadening wedge pattern over the past few weeks, with price consolidating at its lower boundary. This region coincides with the value area low, providing volume support that strengthens the case for continuation higher. The launch of Sonic Labs’ proposal for a $150 million token issuance to enter the U.S. market adds an additional layer of interest and reason for higher prices.

Sonic price technical points:

• Bullish Wedge Support: Sonic is consolidating at the lows of a bullish broadening wedge, aligned with the value area low.
• Key Resistance at $0.40: This level aligns with the value area high and must be reclaimed for upside momentum.
• Upside Extension Target $0.50: A successful breakout backed by volume could fuel a rally toward $0.50.

SUSDT (1D) Chart, Source: TradingView

From a structural perspective, Sonic is trading at a key support within a bullish wedge formation. This type of pattern typically signals accumulation before expansion, especially when the price is holding at the lows of the formation. The presence of the value area low at this region reinforces its significance, providing traders with a technically sound level to watch for a reversal.

The volume profile is currently on a decline, which is natural during consolidations. However, to validate a breakout from this pattern, Sonic will require a surge in bullish inflows. Volume confirmation is critical, as it provides the fuel for the price to rotate back to the upside. Without this, the token risks stagnating within the wedge or drifting lower before demand steps in.

The next critical resistance level lies at $0.40, which aligns with the value area high. A reclaim of this zone would likely confirm renewed bullish momentum and serve as the trigger for a push higher. Beyond $0.40, the $0.50 mark emerges as the next target, where the price would encounter higher time frame resistance. Together, these levels define the immediate roadmap for Sonic if bullish expansion materializes.

What to expect in the coming price action

If Sonic continues to hold support at the value area low and bullish volume begins to flow in, the probability of a breakout from the wedge increases significantly. A rotation to $0.40 followed by $0.50 becomes the likely path. However, if support is lost without volume confirmation, the price could weaken further before buyers return.