$SOMI is currently trading at a critical inflection point. After experiencing a sharp decline from its recent highs, the token is beginning to show early signs of stabilization. However, these initial green candles should not be mistaken for a confirmed trend reversal just yet.
One key factor to watch is volume, which remains elevated at $51M+. This level of activity signals an intense struggle between buyers and sellers, suggesting that a decisive move may be approaching.
Market Structure & Technical Insight 🔍
From a structural perspective, $SOMI continues to face significant supply pressure. Repeated recovery attempts have been met with aggressive selling, forming a strong overhead resistance zone. This behavior indicates that many market participants are still looking to exit positions on rallies.
At present, price action is confined to a tight consolidation range, reflecting indecision across the market.
On the 4-hour timeframe, the RSI is hovering between neutral and slightly oversold levels. Historically, such conditions often precede a sharp move; however, direction will be determined by whether buyers can successfully absorb remaining sell-side liquidity or if bears regain control.
Next Move Scenarios 🚀📉
Bullish Breakout Scenario
A strong hourly close above $0.24 would be a key confirmation.
This could trigger short-covering momentum and open the door for a rapid move toward $0.30–$0.35, where major liquidity clusters are located.
A breakout above this zone would significantly improve the medium-term outlook.
Bearish Continuation Scenario
Failure to hold current support, followed by a breakdown below $0.18, could lead to another impulsive sell-off.
In this case, price may revisit the $0.15 region, a potential capitulation zone where weaker hands are flushed out.
Strategic Takeaway 🧠
The current range is a no-trade zone for disciplined traders. Chasing price action here carries unnecessary risk.
Consider long entries only after a confirmed breakout above $0.24
Alternatively, wait for a deeper retracement toward $0.18 to secure a more favorable risk-to-reward setup
