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After a strong debut rally to $0.11, the Sophon (SOPH) price has retraced nearly 50%, with technical indicators signaling the potential for further downside movement.

Sophon Price Debut and Rapid Decline

Launched on May 28, the SOPH token saw an impressive surge on its debut, climbing from $0.030 to a peak of $0.1108. However, this momentum was short-lived, as the price has since retraced by almost half, currently trading at $0.056. Over the past 24 hours, trading volume has dropped by 40%, settling at $415 million.

Technical Analysis: Breaking Below Key Levels

On the 1-hour chart, SOPH has broken below critical support levels. The price recently dipped under the 20 EMA and failed to hold at the $0.060 level, which previously acted as local support following the announcement of its listing on a major exchange. This area also coincides with the midpoint of the crucial 0.5–0.618 Fibonacci retracement zone, adding to its significance. However, selling pressure prevented any sustained recovery.

Currently, SOPH trades at $0.056, slipping below the 0.618 Fibonacci retracement level ($0.05788). The next immediate support lies near the 0.786 Fibonacci level at $0.053. This level could serve as a potential reversal point, but without a strong bounce or a bullish confirmation, the likelihood of further declines remains high.

Momentum and Volume Weakening

Adding to the bearish sentiment, momentum indicators are showing signs of weakness. The Relative Strength Index (RSI) has dropped significantly, falling from overbought levels above 80 to 33, and is currently trending below its moving average. This downward movement in the RSI suggests fading buying interest.

Furthermore, trading volume has diminished sharply, decreasing by over 40% in the last 24 hours. This decline in volume reflects reduced market participation and may exacerbate the bearish outlook if no significant recovery follows.

Key Takeaways for Investors

For investors and traders monitoring SOPH, the following points are worth considering:

  • The next support level to watch is $0.053, near the 0.786 Fibonacci retracement level.
  • A strong bullish confirmation candle is needed to signal a potential reversal.
  • Monitor the RSI and trading volume for signs of renewed buying momentum.
  • Be cautious of further downside if the price fails to hold above key support levels.

As the cryptocurrency market remains highly volatile, staying informed about technical levels and market sentiment is critical for making informed decisions.

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