🌎 Sonic Price Surges 12.5% Amid Growing DeFi Prominence

Sonic’s Price Surges 12.5% Amid Growing Prominence in Decentralized Finance

Sonic, formerly known as Fantom, has seen a significant price rally of 12.5%, deviating from the broader market trend. This surge in price comes as the global crypto market dropped 3.7% over the past day, with major altcoins like Ethereum, XRP, Binance Coin, Solana, and Dogecoin recording losses of 4-8%.

Sonic’s Recent Gains

Sonic soared to $0.903 on Monday, February 24, marking a 140% jump from its lowest level since its transition. Its market cap was seated at over $2.7 billion while its daily trading volume rose slightly, hovering over $337 million.

Drivers Behind Sonic’s Gains

The major driver behind Sonic’s gains appears to be a recent community report suggesting that crypto exchange Binance has become a validator for the Sonic network. Although this has not been confirmed directly by Binance or the Sonic team, the news has likely fueled community interest.

Additionally, Sonic has partnered with Fjord Foundry, a decentralized fundraising launchpad that will enable developers to raise funds and launch tokens using Sonic through fixed-price sales, Liquidity Bootstrapping Pools, and tiered sales. This integration will likely boost Sonic’s utility and adoption, attracting new projects to the Sonic ecosystem while increasing demand for the token.

Sonic’s Growing Presence in DeFi

Sonic has attracted nearly 80 developers over the past two months, with top DeFi protocols on Sonic including Silo Finance, Beets, Shadow Exchange, and Avalon Labs, each managing over $100 million in TVL. The total value locked on Sonic has reached $724 million, making it the 9th-largest blockchain by this metric.

DApps built on the Sonic mainnet have seen a notable hike in daily revenues, averaging $176.4K over the past two days. This is a significant increase from the $24.73K recorded on February 22.

Sonic Price Action

Multiple technical indicators have flagged bullish signals. On the 4-hour S/USDT chart, the Aroon Up was at 85.71% and Aroon Down at 21.43%, indicating that buying pressure was far greater than the selling pressure.

The Relative Strength Index has remained above 50 over the past two weeks, showing sustained bullish momentum in play. Both the +DI and ADX lines are above 20, indicating more potential upside in the short term.

Analyst Predictions

Analysts have spotted a rare bullish pattern forming on the S 4-hour chart, known as the Cup and Handle pattern. This pattern is a popular continuation indicator in technical analysis.

One analyst estimates a $1.475 target price, representing a 75% increase from the current level, provided Sonic completes the pattern. Another analyst has predicted an even more bullish target at $2, noting that the altcoin had been in an accumulation phase over the past month before it broke out last week.