Sonic Price Forms Rare Pattern: Is a 50% Surge on the Horizon?

Sonic (formerly known as Fantom) has shown impressive growth recently, with its price reaching $0.99 on Friday—a 200% surge from its lowest level since rebranding. The surge in Sonic’s price is driven by its increasing prominence in the decentralized finance (DeFi) space. According to DeFi Llama, Sonic has been attracting developers, adding nearly 80 over the past two months, with its decentralized applications (dApps) collectively accumulating $676 million in total value locked (TVL). This places Sonic as the 13th-largest blockchain in terms of TVL.

The platform’s growth is also reflected in its stablecoin holdings, which have surpassed $146 million, overtaking established blockchains like Cardano (ADA) and Cronos (CRO). In addition, Sonic has seen a sharp increase in decentralized exchange (DEX) volume, with a remarkable 84% increase in weekly DEX volume, now at $501 million, and a 30-day total of $1.27 billion. These figures have placed Sonic ahead of blockchains like Avalanche, Sui, Near, and Tron in terms of DEX activity.

The increasing number of Sonic users and transactions adds to the bullish sentiment, with over 2.9 million transactions processed in the last seven days and 46,300 new addresses.

Sonic Price Forecast

Technical analysis suggests that Sonic’s price could experience further growth in the coming days. The four-hour chart reveals a cup and handle pattern, which is considered a continuation pattern. This pattern has a horizontal resistance level at $0.8463 and a rounded bottom, signaling that Sonic’s price may continue to rise.

The target price for this pattern is calculated by measuring the depth of the cup (approximately 57%) and projecting it from the upper boundary of the cup. This indicates that Sonic’s price could surge to $1.30, a potential 50% increase from its current level.

This positive outlook is supported by Sonic’s growing DeFi ecosystem, strong user growth, and technical pattern formation, all of which suggest a bullish continuation in the near future. However, market conditions and broader sentiment will also play a significant role in determining whether this price surge materializes.