$SOMI Key Levels to Watch

· Resistance: $0.83 (Previous support & 24h high)
· Support: $0.738 (Critical 24h low and breakdown level)
· Current Trend: Strong Downtrend
· Volume: High (Confirming selling pressure)
My take: The breakdown from the $0.83 level was decisive. Sellers are in full control. A break below the $0.738 support with sustained volume could trigger a steeper decline toward **$0.68**. For any bullish reversal, buyers need to reclaim $0.76 to stabilize, then target a move back toward $0.83.
Breakdown or Shakeout?
The chart for $SOMI** tells a clear story of a sharp reversal. The failure to hold gains after the volatile peak at **$1.0485 has led to a cascade of selling.
The Bear Case (The Breakdown):
· The price has sliced through key support levels with high volume, indicating strong conviction from sellers.
· The immediate focus is the $0.738** level. If this level breaks and fails to recover quickly, it would signal that the correction is deepening, with the next significant support not until the **$0.68 zone.
· The high volume on the sell-off validates the bearish momentum.
The Bull Case (The Healthy Retest):
· All trends need to cool off. This could be a sharp, but necessary, retest of a higher low relative to its previous base.
· If the $0.738 level holds firm and buyers step in with force (shown by a bullish engulfing candle on the 4H chart), it could form a solid foundation for a potential rebound.
· The high volume could also indicate capitulation—a point where weak hands panic-sell, often preceding a reversal.
For now, the path of least resistance is down. The reaction at the $0.738 support is absolutely critical for determining the next directional move.