【$SONIC Signal】Long | Short squeeze confirmed, pullback to add long positions

After a strong short squeeze rally, $SONIC is experiencing a healthy correction on the 4H timeframe. Currently, the price is consolidating above the key breakout level.

🎯Direction: Long

🎯Entry: 0.0560 - 0.0575

🛑Stop Loss: 0.0532 (Break below previous low/invalidity point, rigid stop loss)

🚀Target 1: 0.0615

🚀Target 2: 0.0650

Market analysis: The price has strongly broken above EMA20(0.0489) and EMA50(0.0470), confirming a short-term trend reversal. Although the 4H RSI(72.54) is in the high zone, combined with a -0.3846% deep negative funding rate and stable open interest(OI), this is a typical short squeeze pattern. The bears are being continuously squeezed, not signaling a top.

Hardcore logic: Depth data shows that the ask wall(Asks) above 0.0583 has significantly thickened, forming short-term resistance. However, the bid wall(Bids) in the 0.0580-0.0582 range is accumulating substantial liquidity, indicating funds are defending this level. The price retraced from the high of 0.0616 with decreasing volume, which is a healthy technical correction aimed at clearing out floating positions.

The key entry zone of 0.0560-0.0575 is the 50% Fibonacci retracement of the previous rally and a dense zone of 4H candle bodies, forming strong support. As long as the price stays above the previous low of 0.0532, the short squeeze logic remains valid, and the probability of testing the previous high of 0.0615 and the Fibonacci extension at 0.0650 is very high. Risk-reward ratio(R:R) > 2.0.

Trade here 👇 $SONIC

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