Is Sonic ready to break through the levels? What to expect from the expanding wedge

Sonic (SONIC) is in an interesting technical position. Near the $0.40 mark, the coin has formed a characteristic expanding wedge — a pattern that often precedes a strong move after breakout. The current price position at the lower boundary of this configuration is critical: it could be the starting point for an upward impulse toward $0.50.

What do technical indicators show? The price recently crossed the 20-day simple moving average (SMA) at $0.31, which now acts as a dynamic support. The Parabolic SAR indicator also confirms a bullish scenario — blue dots are positioned below the recent candles, indicating demand dominance. These signals are working in sync, hinting at market readiness for a directional move.

Volume — a key factor for breakout

The role of trading volume cannot be underestimated. During consolidation, volume usually decreases, which is a normal stage of pattern formation. However, to confirm a breakout from the expanding wedge, a sharp spike in activity is necessary. Currently, the 24-hour trading volume is $1.76M, indicating increasing interest in the token. If volume significantly increases when testing the upper boundary of the wedge at $0.40, the pattern will be confirmed and the path to $0.50 will open.

Fundamental catalysts support the bullish scenario

Token issuance from Sonic Labs amounting to $150 millions is aimed at activating demand in the US market. This could become a real price driver, attracting both institutional and retail investors. Such initiatives are often accompanied by increased trading activity precisely at the breakout moment.

What investors should watch

A critical support level is at $0.31 — the lower boundary of the expanding wedge. If the price drops below this mark, the pattern will be invalidated and a pullback will begin. On the other hand, it’s important to remember previous failures: Sonic tested resistance at the Fibonacci correction level of 0.5 ($0.89) but failed to hold above it. This indicates that the overall market sentiment may remain cautious. Additionally, the gap between the current price ($0.08) and the historical maximum ($1.23) remains significant, requiring a serious change in macroeconomic conditions for sustainable growth.

Summary: readiness depends on volume

The technical configuration of the expanding wedge combined with fundamental catalysts creates favorable conditions for a rally. However, volume remains the ultimate arbiter. A confirmed breakout supported by a surge in trading activity could propel Sonic toward $0.50. Conversely, a lack of volume growth or failure to hold key support levels should alert attentive traders.