Sonic Price Uptrend
Sonic’s price continues its recent uptrend as most cryptocurrencies rebound, and its Decentralized Finance (DeFi) ecosystem flourishes.
Price Movement
Sonic (S), formerly known as Fantom, reached a high of $0.6072 on Monday, marking its highest level since March 3.
In an X post, The DeFi Plug, a well-known crypto researcher, provided two main reasons to expect further upward movement for Sonic:
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Undervaluation
The Sonic token is considered highly undervalued compared to other layer-1 coins, particularly Solana (SOL). The market cap-to-DeFi Total Value Locked (TVL) ratio for Solana is 12, while Sonic’s is just 2. If Sonic catches up to Solana, it might indicate a potential gain of 5 to 10 times from its current level.
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Ecosystem Growth
Sonic’s ecosystem has expanded, with over $854 million in DeFi TVL accumulated in under three months since its rebranding. The number of developers on the Sonic network is also increasing, attracted by low transaction fees and fast speeds. Additionally, Sonic employs a fee monetization model that returns 90% of network gas fees to developers, resulting in around 70 developers earning over $418,000 since its launch. This model has attracted significant projects, including AAVE (AAVE), which has moved onto the network, bringing in over $250 million in assets.
Short-Term Price Analysis
The four-hour price chart indicates Sonic rebounded from $0.4055 on March 11 to its current price of $0.60. It has surpassed a vital resistance level of $0.5610, where it previously formed a double-top pattern.
Sonic now sits above the 50-period moving average and the ascending trendline, which marks its recent upward momentum. The token has also crossed above the 61.8% Fibonacci Retracement level and the Ichimoku cloud indicator, suggesting further growth potential. Bulls aim to reach this month’s high of $0.7891, representing a 30% increase from its current level. A break above that high could signal a push towards $1, which would be a 60% rise from the present price.
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