Sonic Faces Continued Price Decline Amid Bearish Indicators
Sonic’s price is expected to keep falling in the coming weeks. bearish technical signs and slowing ecosystem momentum are to blame. On June 13, Sonic’s price dropped 15% to $0.314, a 68% decrease from its yearly high. This decline has brought its market cap close to the $1 billion mark, down from $3.15 billion in january.
Geopolitical tensions contributed to this crash. after Iran attacked Israel, the global crypto market lost over 7% in value. Sonic was hit hard. Coinbase’s recent listing of the S token didn’t help. On-chain data remains bearish, with core metrics showing sustained weakness.
Data from santiment shows that the total value locked in DeFi protocols on Sonic chain has dropped from nearly $2 billion in May to $1.54 billion. Protocols like Silo Finance and Pendle have seen their TVLs drop by 35% to 50%.
This slowdown means Sonic isn’t generating as much revenue. Daily on-chain revenue has slipped to $5,977, compared to a peak of $42,000 in May. Stablecoin supply on Sonic has also decreased by nearly $200 million this year, weakening liquidity and user activity.
Moreover, negative funding rates across exchanges indicate bearish sentiment. Based on these metrics, Sonic may continue to face downward pressure unless there’s a meaningful turnaround in ecosystem activity and investor sentiment.
On the 1-day USDT chart,Sonic’s price has been falling. It recently dropped below $0.32, its last strong support level. The $0.38 level also acted as the neckline of a double-top pattern, a bearish signal. Sonic has been moving within a falling broadening wedge, indicating continued downward pressure.
The 20-day simple moving average has crossed below the 50-day, forming a death cross. The MACD lines are pointing downward, and the Aroon Up is at 0%, while Aroon Down is elevated. These signs suggest the downtrend is strong. sonic’s price could keep sliding, with the next major support level around $0.30.
