【$SONIC Signal】Long | Short Squeeze Initiated, Deep Imbalance

After a prolonged decline, $SONIC experienced a V-shaped reversal at a key support level (around 0.045), with a single-day increase of over 23%. It is now consolidating at higher levels to digest profit-taking.

🎯Direction: Long

🎯Entry: 0.0615 - 0.0620

🛑Stop Loss: 0.0580 (Break below the low of the previous 4H bullish candle, rigid stop loss)

🚀Target 1: 0.0680

🚀Target 2: 0.0740

Logical core: This is a typical short squeeze market, not just a pump and dump. Key evidence: 1) Funding rate is as high as -0.3521%, indicating extremely high short holding costs; 2) Open interest (OI) remains stable at 54.87 million, showing shorts have not exited and may be getting squeezed; 3) Order book depth is severely imbalanced, with buy orders 2.65 times thicker than sell orders, indicating strong support below and thin selling pressure.

Price action-wise, yesterday’s large bullish candle directly engulfed the decline of the previous week, confirming a bottom reversal. Although RSI (73) is high, in a short squeeze scenario, it is not an effective overbought signal. Price remains above the EMA20 (0.0518), indicating a bullish trend. A pullback to 0.0620-0.0615 (the first consolidation zone after yesterday’s breakout and Fibonacci 23.6% retracement) is an ideal low-risk entry point. Stop loss is set at 0.0580, just below the previous low, marking the point where the logic fails. Risk-reward ratio > 2.

Trade 👇 $SONIC

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