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Sonic’s price is expected to remain under pressure in the coming weeks as bearish technical indicators persist and ecosystem momentum slows. With reduced activity and declining metrics, the outlook for the token continues to signal caution for investors.

Sonic Price Performance Overview

Sonic’s price dropped by 15% to hit an intraday low of $0.314 on June 13, marking a steep decline of over 68% from its peak earlier this year. This significant downturn has pushed its market capitalization dangerously close to falling below the $1 billion mark, a sharp contrast from its $3.15 billion valuation in January.

The recent sell-off in cryptocurrencies has been driven by rising geopolitical tensions. A military attack by Iran on Israel, accompanied by escalating retaliatory threats, triggered a broader flight from risk assets. On June 13, the global cryptocurrency market lost over 7% in value, with Sonic among the hardest hit.

Declining Ecosystem Activity

Despite brief attention from a Coinbase listing announcement for the S token earlier in the day, Sonic’s bearish trend remains intact. Key on-chain metrics reflect sustained weakness across the network.

According to on-chain data, the total value locked (TVL) in decentralized finance (DeFi) protocols on the Sonic chain has fallen from nearly $2 billion in May to $1.54 billion. Major protocols like Silo Finance, Pendle, AAVE, and Beets have experienced TVL drops ranging from 35% to 50% over the past month.

This decline in activity has directly impacted Sonic’s revenue. Daily on-chain revenue has plummeted to just $5,977 as of Friday, compared to a peak of over $42,000 in May. Additionally, the supply of stablecoins on the Sonic network has contracted by nearly $200 million this year. Reduced liquidity and lower user activity have further compounded the network’s struggles.

Bearish Sentiment Among Traders

Traders remain cautious, as funding rates across exchanges have stayed negative. On May 13, the funding rate hit 0.05%, its lowest in over a week, signaling that traders expect Sonic’s price to continue declining.

These bearish signals suggest that Sonic may face continued downward pressure in the short term. A meaningful recovery will likely depend on a resurgence in ecosystem activity and improved investor sentiment.

Sonic Price Analysis

On the 1-day USDT chart, Sonic’s price has been in a prolonged decline over recent weeks. It recently broke below the $0.32 support level, with the $0.38 zone—April’s lowest swing—also breached. Notably, the $0.38 level served as the neckline of a double-top pattern formed around $0.618, a classic bearish indicator in technical analysis.

Sonic’s price action has been confined within a falling broadening wedge pattern, which typically signals continued downward pressure unless the price breaks above the wedge’s upper boundary. Adding to the bearish outlook, the 20-day simple moving average (SMA) has crossed below the 50-day SMA, forming a “death cross.” This widening gap between the SMAs indicates that sellers remain firmly in control.

Moreover, the MACD (Moving Average Convergence Divergence) lines are trending downward, while the Aroon Up indicator is at 0%, and the Aroon Down remains elevated. These metrics confirm the strength of the ongoing downtrend.

Key Levels to Watch

  • Support Level: Sonic’s next significant psychological support level is around $0.30. A break below this level could trigger further declines.
  • Resistance Level: If buyers step in, a move above the wedge’s upper boundary and the $0.399 mark—aligned with the 20-day SMA—could signal a bullish reversal.

Outlook for Sonic

Given the current setup, Sonic’s price may remain under pressure in the near term. For a potential recovery, the network will need to see a meaningful uptick in activity, improved liquidity, and a shift in trader sentiment. Investors should closely monitor on-chain metrics and technical indicators for early signs of a reversal.

Disclosure: This article is for educational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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