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

After a strong short squeeze rally, $SONIC it is undergoing 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/invalidates logic, 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.

Hard logic: Depth data shows that the ask wall(Asks) significantly thickens above 0.0583, forming short-term resistance. Meanwhile, a large amount of liquidity is stacked in the bid zone(Bids) between 0.0580-0.0582, 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 short-term holders.

The key entry zone of 0.0560-0.0575 is the 50% Fibonacci retracement of the previous rally and a dense zone of 4H candlestick bodies, forming strong support. As long as the price stays above the previous low of 0.0532, the short squeeze logic remains valid. 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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