Sonic is not out of the woods yet. Prepare yourself: bearish signals are flashing red, and the ecosystem that was once thriving is losing its pulse. Price erosion is to be expected in the weeks ahead.
The crash of Sonic’s (S) shares continues at a high velocity on June 13 as it fell one more 15% to the price level of $0.314 being just enough to make your stomach turn. This is not a dip; this is a sonic boom reversed, meaning the price has wiped out more than 68% of its value since the beginning of 2024. Investors wonder if this speedster has finally run out of juice as Sonic flirted with a $3.15-billion valuation in January and almost being cast into the $1 billion abyss now.
Here is one of the dates etched in the annals of crypto history: June 13. Fear griped global markets as geopolitical flames were flaring. The Iranian hit on Israel triggered a frantic run for safety with over 7 percent of crypto market value wiped out. In the middle of a cacophony of losses, a name exhibited more echo than others: Sonic, it seemed to be another casualty of the heightened tensions and consequent panic selling.
The token S listing on Coinbase gave a fleeting moment of excitement, but the buzz quickly faded away. The on-chain data paints a grim picture, flashing red signals of prolonged weakness across the network, thus, suggesting that initial surge was just a mirage.
It’s the end of the DeFi summer and $500 million has been wiped off the market. If we go by the Santiment data, a truly chilling story has been unfolding for Sonic Chain’s DeFi ecosystem. The ever-growing TVL, which stood at an enthralling $2 billion in May, found itself washing ashore along the $1.54-billion mark. Ouch. Heavy hitters like Silo Finance, Pendle, AAVE, and Beets have all felt the one-two punch as they have lost 35%-50% of their TVL within a month. Will this serve as a mere interlude, or shall it instead confirm Sonic Chain’s entry into DeFi winter?
Sonic’s speed bump? Once considered the fastest blockchain around, this one now sees revenue being slowly chilled down. With $5,977 realized on-chain on Friday, it is really quite a few miles short away from the May lows-which saw something above $42,000, suggesting the platform finds its balance going away.
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The Sonic network reserves in its last stablecoin for almost $200 million this year, choking off the lifeblood of the network. The thinning supply has drained liquidity, which has cast a menace on user activity and slowed the heartbeat of the platform.
Trading price of Sonic is pressured as funding rates across exchanges remain stubbornly negative, suggesting a chilling bearish consensus. One data point from Santiment legitimizes this pessimism: on May 13, the funding rate plummeted to -0.05%, a week-low, betraying an expectation among traders that the price shall keep dropping.
Sonic’s rally hits a speed bump. On-chain bearish signals suggest the lurking dangers of further downside. Without a fresh uptick in ecosystem vibrancy and newer injections and renewed investor confidence, Sonic’s recovery may lie muted. Buckle up; choppy waters ahead.
Sonic price analysis
On the 1-day USDT chart, Sonic’s price has been in free fall over the past few weeks.
“$0.32 cracked: It’s not merely a dip; it’s a plunge down below the last line of defense. April’s low swing was around $0.38, and that important level is now in the rearview mirror. But here’s the kicker: $0.38 wasn’t just any number. It was the neckline of a gruesome double-top formation somewhere near $0.618. That’s a very bearish signal from technical analysis.”
S price, 20-day and 50-day SMA chart June 13 | Source: crypto.news
Sonic is held! Pinned within this falling broadening wedge, the price action continues to give gravity at least a little chance to act when still within these converging boundaries. Keep an eye on this one!
Bears are tightening their grip on the market. A chilling death cross has unfolded with the 20-day SMA having clocked below the 50-day SMA, and the spread is widening, a sign that sellers are running the show.
The bears are still digging deep with their claws. The MACD confirms the selling pressure that has been unfolding, while the Aroon sets the stage for a depression: Aroon Up flat lining, Aroon Down skyrocketing. Downtrend confirmed.
S MACD and Aroon chart June 13 | Source: crypto.news
Based on this setup, Sonic’s price could keep sliding, with the next major psychological support level around $0.30.
However, the breakout looms if the bulls assume control and break the wedge’s ceiling. This surge will carry the token past $0.399, where it may meet the 20-day moving average, signaling an outright change in momentum.
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Remember first and foremost: We are here to explore, not to invest. The article is all about teaching materials and not a financial script.
Thanks for reading Sonic poised for deeper correction ahead despite a potential Coinbase listing
