Sonic has the potential to surge nearly 30% from its current price, fueled by the rollout of its virtual payment card and its growth in the DeFi sector through new collaborations.
As per analyst insights, Sonic has regained crucial support and is emerging from a downtrend, paving the way for what the analyst describes as a “programmed” ascent towards the $0.60–$0.70 range, with a chance of hitting $1.
A chart shared by the analyst illustrated a bullish breakout from a descending trendline, accompanied by robust momentum, which often precedes further price increases.
A well-known trader expressed similar optimistic views, noting that Sonic has retraced to significant levels and is displaying encouraging signs of recovery.
Recent data indicated that Sonic (S) rose by almost 11% to an intraday peak of $0.55 on March 20, marking a total increase of over 18% from its weekly low of $0.45. Its market capitalization stood at $1.71 billion, with daily trading volumes nearly doubling to $216 million compared to the previous day.
A key driver behind this upward momentum is the introduction of Sonic Pay, a virtual payment card launched in collaboration with RedotPay. This card allows users to make payments using USDC.e via Apple Pay and Google Pay, streamlining the transition from crypto to fiat and enhancing Sonic’s real-world applications.
Furthermore, Sonic is bolstering its presence in the DeFi landscape through strategic partnerships. A significant development is the integration of ChainGPT’s AI NFT Generator, ChainGPT Pad, and DegenPad with Sonic’s high-speed blockchain. This synergistic collaboration is designed to optimize NFT minting for creators and developers, enhance fundraising avenues for Sonic-based projects, and stimulate ecosystem growth for both investors and the wider Sonic community.
Sonic is also showcasing impressive growth within the DeFi domain. Recent figures reveal that its total value locked surged to an all-time high of $841.5 million, a remarkable increase from just $25.41 million at the beginning of the year.
Notably, it was among the fastest-growing blockchains by total value locked in February.
Additionally, this layer-1 blockchain is being recognized as one of the swiftest chains in terms of block time, even outperforming notable competitors such as Solana, Arbitrum, and Base.
S Price Analysis
With community sentiment notably positive, technical indicators also suggest a possible upward movement.
On the 4-hour/USDT price chart, Sonic has continued to rise above the multi-week descending parallel channel it broke above on March 14.
The Aroon Up indicator stood at 85.71%, while the Aroon Down was at 7.14%, indicating strong buying momentum. The Relative Strength Index reading of 60 suggests there’s still potential for gains before a selloff occurs.
Additionally, the altcoin’s funding rate remained positive, with open interest seeing a notable increase at the time of writing, according to data from CoinGlass. A positive funding rate alongside rising open interest indicates a growing number of derivatives traders placing bullish bets on S.
This trend typically reflects increased market confidence and bullish momentum, which could further propel the current rally.
Consequently, Sonic seems poised for a run towards $0.7, a support level it has struggled to maintain on multiple occasions since the start of the year. At the moment, S was trading at $0.53 per coin.
Disclaimer: This article should not be considered investment advice. The information and materials presented on this page are for educational purposes only.