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Sonic price has continued its upward momentum as the broader cryptocurrency market rebounds and its Decentralized Finance (DeFi) ecosystem experiences significant growth.

Sonic Price Surge: Key Developments

Sonic, previously known as Fantom, has risen to a high of $0.6072, marking its highest level since March 3. This growth has caught the attention of crypto enthusiasts and analysts alike, with many speculating further upside potential.

Why Sonic’s Rally Could Continue

A popular crypto researcher, The DeFi Plug, identified two primary reasons for Sonic’s continued rally:

  • Undervalued Layer-1 Comparison: Sonic is considered undervalued compared to other layer-1 blockchain tokens such as Solana. Solana has a market cap-to-DeFi TVL (Total Value Locked) multiple of 12, while Sonic’s multiple stands at just 2. If Sonic’s valuation aligns with Solana’s metrics, this could signify a potential 5 to 10 times price increase.
  • Growth in Ecosystem: Sonic’s DeFi ecosystem has expanded rapidly, achieving over $854 million in TVL within three months of rebranding from Fantom. This growth underscores its increasing adoption and utility.

In addition, Sonic’s unique fee monetization model is attracting developers to its network. This model redistributes 90% of the network’s gas fees to developers, fostering innovation and growth. Since its launch, over 70 developers have collectively earned more than $418,000. The network’s low transaction fees and faster speeds further enhance its appeal.

Notably, major DeFi platforms like AAVE have migrated to Sonic, bringing over $250 million in assets. This migration signals confidence in Sonic’s infrastructure and its potential for sustained growth.

Sonic Price Analysis: Short-Term Outlook

Technical analysis reveals that Sonic has rebounded from its March 11 low of $0.4055 to its current price of $0.60. The token has broken above key resistance levels, including $0.5610, where it previously formed a double-top pattern on March 15 and March 20.

Key indicators suggest further bullish momentum:

  • Sonic is trading above the 50-period moving average, signaling strong upward price action.
  • The token has surpassed the ascending trendline connecting the lowest swings since March 11, further confirming its bullish trajectory.
  • Sonic has broken above the 61.8% Fibonacci Retracement level and the Ichimoku cloud indicator, indicating a continuation of the uptrend.

Based on current trends, Sonic’s price could rise to $0.7891 in the short term, representing a 30% increase from current levels. If momentum persists, the token may reach $1, marking a 60% gain.

Final Thoughts

Sonic’s recent performance highlights its growing prominence in the cryptocurrency and DeFi space. With a rapidly expanding ecosystem, strategic incentives for developers, and strong technical indicators, Sonic appears well-positioned for further growth. As with any investment, individuals should conduct thorough research before making financial decisions.

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