【$SONIC Signal】Bullish | Healthy Pullback After Short Squeeze Initiation

$SONIC After experiencing a 22% short squeeze-driven surge, the price consolidates within a narrow range below the previous high resistance zone. This is a typical healthy reset, not a top.

🎯Direction: Long

🎯Entry: 0.0485 - 0.0492

🛑Stop Loss: 0.0470 (Break below previous low and EMA20 support, rigid stop loss)

🚀Target 1: 0.0535

🚀Target 2: 0.0570

Market Analysis: The 4-hour chart shows a breakout structure with volume and price rising together. Currently, the candlesticks are consolidating with decreasing volume in the 0.049-0.050 range, indicating very weak selling pressure. Depth data shows bid thickness significantly exceeds ask (Bid/Ask Ratio: 1.39), suggesting strong institutional accumulation and support below.

Logical Core: This is a classic short squeeze scenario. The funding rate is as high as -0.45%, but the price continues to rise with stable open interest, indicating shorts are being continuously squeezed rather than main players distributing. The price remains above EMA20 (0.0436), confirming the trend. Although RSI (73) is high, in a short squeeze environment, it’s not a reason to short.

The key entry at 0.0485 is the 50% Fibonacci retracement of the previous rally and order block support, also the lower boundary of the current consolidation zone. The stop loss is set at 0.0470, the point where breaking below the previous low and EMA20 would invalidate the logic. The targets are 0.0535 at the previous high resistance and 0.0570 at the daily Fibonacci extension level. Risk-reward ratio >2.0, offering a clear mathematical advantage.

Trade here 👇 $SONIC

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