Sonic Corporation might face further adjustments, despite the possibility of Coinbase exchange listing its cryptocurrency offering.
Revamped Report on Sonic's Future Financial Prospects
Sonic's financial future seems to be on a downward spiral as the digital currency continues to plummet in value. Over the past month, Sonic's price has taken a nosedive of about 39.07%, and a staggering 62.11% drop over the last year.
The crytpo-verse felt the heat on June 13, with Sonic being one of the hardest hit after Iran launched a military attack on Israel and global tensions soared. As a result, the entire crypto market lost over 7% of its value.
Despite the gloomy outlook, the Fear & Greed Index still hovers at 63, indicating a somewhat greedy sentiment among investors, seemingly underestimating the bearish situation.
Several key support levels are emerging, with Sonic's price currently resting around $0.32. It's not far from plunging below the $1 billion market capitalization mark, moving away from the $3.15 billion it once held in January.
The chart paints a grim picture, showing Sonic's price in a free fall over the past few weeks. The token has dipped below $0.32, a significant support level, and is now well under $0.38, which matches April's lowest swing and served as the neckline of a double-top pattern.
Furthermore, Sonic is caught within the confines of a falling broadening wedge, a technical pattern that usually indicates continued downward pressure. The 20-day simple moving average has crossed below the 50-day, forming a "death cross," and still shows a widening gap, indicating sellers remain in control.
The MACD lines are pointing downward, and the Aroon Up is sitting at 0% while Aroon Down is significantly higher, both signs that the downtrend is still strong. This suggests Sonic's price might continue to slide, with the next major psychological support level hovering around $0.30.
However, a shift in investor sentiment and a push above the upper boundary of the wedge could signal a potential bullish reversal, sending the token back above $0.399 and its 20-day moving average.
The slowdown in activity has caused daily on-chain revenue to slip to just $5,977 as of Friday, compared to a peak of over $42,000 in May. The total value locked across DeFi protocols on Sonic chain has plunged from nearly $2 billion in May to $1.54 billion. Notably, AIMA, AAVE, and Silo Finance have seen their total value locked drop by 35% to 50% over the past month.
Stablecoin supply has contracted by nearly $200 million this year, weakening liquidity and leading to a slowdown in user activity. Funding rates across exchanges have remained negative, indicating continued bearish sentiment among traders.
In summary, the current technical and on-chain data indicate Sonic may face continued downward pressure in the near term. Meaningful improvements in ecosystem activity and investor sentiment are needed for a strong recovery. Keep a close eye on market sentiment, technical indicators, and broader market conditions for a more accurate prediction.
Keep in mind that this analysis shouldn't be taken as financial advice. Always conduct extensive research before making any investment decisions.
- The decline in Sonic's price has impacted the broader crypto market, with Sonic being one of the hardest hit after a military attack, causing a 7% loss across the market.
- Despite the bearish situation, the Fear & Greed Index shows a somewhat greedy sentiment among investors, underestimating the extent of the bearish situation.
- The chart shows Sonic's price in a free fall, dipping below significant support levels and forming a technical pattern that indicates continued downward pressure.
- The slowdown in activity on Sonic chain has led to a drop in daily on-chain revenue, total value locked across DeFi protocols, and stablecoin supply, weakening liquidity and leading to a decrease in user activity.
- Funding rates across exchanges remain negative, indicating continued bearish sentiment among traders, and a strong recovery for Sonic may require meaningful improvements in ecosystem activity and investor sentiment.
