Reasons Behind Sonic’s 25% Price Surge This Week
Sonic, formerly known as Fantom, was the second-best performing top-100 crypto coin this week, as it jumped by 25%.
Sonic (S) soared to a weekly high of $0.5882 on Thursday, its highest level since January 31 and 75% above its lowest point this year.
The token jumped as third-party data showed that its ecosystem was doing well. According to DeFi Llama, the total value locked in the ecosystem surged to a record high of $400 million, a significant increase from the $27.5 million it had at the start of the year.
Most dApps in the ecosystem have experienced a substantial increase in assets. Silo Finance, a lending protocol on Sonic, has $133.7 million in assets, reflecting a 20% gain in the last seven days.
Avalon Labs’ assets have jumped to $124 million. Other top-performing assets in the Sonic ecosystem include Shadow Exchange, SwapX, and ICHI. This performance indicates that the network will continue to attract more developer interest over time.
Sonic’s price has risen due to its increasing staking yield, which surpasses that of other crypto tokens. According to its website, Sonic offers a staking yield of 5.98%, higher than Ethereum’s (ETH) 3.3% and Sui’s 2.55%.
Furthermore, Sonic aims to become a significant player in the meme coin industry through its meme mania promotion. In recent weeks, meme coins like Goggles, TinHatCat, and Indi have each accumulated a market cap of over $3 million.
Sonic price forecast
The two-hour chart indicates that the S price bottomed at $0.310 earlier this month and has rebounded to $0.5500. It has moved slightly above the 50-period moving average.
There are signs that the Sonic price is forming an inverse head and shoulders pattern, a popular bullish reversal signal. It has completed the left shoulder and the head section.
Therefore, the coin may retreat to the right shoulder at $0.4325 and then resume the uptrend. A rebound above the neckline at $0.5878 will suggest further upside, with the next level to watch being at $0.8480, approximately 96% higher than the current level. A drop below the shoulder section at $0.4325 will invalidate the bullish outlook.
