Sonic Token Faces continued Price Decline Amid Bearish Indicators
sonic’s price is expected to continue its downward trend in the coming weeks due to ongoing bearish technical signals and reduced activity in its ecosystem.
On June 13, Sonic (S) suffered a important dip, plummeting 15% to $0.314. This marks a 68% drop from its peak earlier this year. The tokenS market cap is near the $1 billion mark, down from $3.15 billion in January.
Global tensions played a role in this decline. After Iran attacked Israel, many investors fled risky assets. This caused a 7% drop in the global crypto market, with Sonic being one of the hardest hit.
Despite Coinbase listing the S token, it hasn’t changed the trend. On-chain data points to sustained weakness, with key metrics showing the network struggling.
Santiment data reveals that the total value locked in Sonic’s DeFi protocols has fallen from nearly $2 billion in May to $1.54 billion. Major protocols like Silo Finance and Beets have seen their TVLs drop by about 35% to 50%.
- On-chain revenue has decreased to $5,977, down from $42,000 in May.
- Stablecoin supply has contracted by nearly $200 million this year.
Funding rates are also negative, indicating a bearish outlook. Unless ecosystem activity and sentiment improve, Sonic may face further downward pressure.
Price analysis shows Sonic moving within a falling broadening wedge, a bearish pattern. The 20-day simple moving average crossed below the 50-day, forming a death cross, and it’s still widening, suggesting sellers are in control.
MACD lines point downward, and Aroon Down is elevated, reinforcing the downtrend. Sonic’s next major support level is around $0.30. If buyers intervene and push the price above the wedge’s upper boundary, it could signal a bullish reversal, potentially pushing the token above $0.399.
