Sonic (S) token has experienced a surge in price for the second consecutive day as the network’s transactions reached a milestone of 120 million. The token reached a high of $0.3555 on Thursday, marking a 25% increase from its recent low, before settling at $0.3300 at the time of writing.
The surge in Sonic’s price came after developers announced that the layer-1 network had surpassed 120 million transactions, just six months after its launch. Despite this significant milestone, there are indications that Sonic may be losing momentum, leading to a pullback in its token price.
Data from Nansen reveals a 202% decline in Sonic’s transactions over the last 30 days, with the number of active addresses on the network also decreasing by 40% to 232,000. This slowdown stands in contrast to the increased transaction activity observed on other chains like Arbitrum and Linea.
Furthermore, the Sonic ecosystem is facing challenges, as evidenced by a decrease in stablecoin supply to $209 million, the lowest level since March. Additionally, Sonic’s total value locked (TVL) has plummeted from nearly $2 billion earlier this year to $1.2 billion.
In terms of technical analysis, the daily chart of Sonic’s price shows a sideways trading pattern, with the token currently hovering around $0.30, slightly above the year-to-date low of $0.2490. A descending triangle pattern has formed, indicating a potential bearish continuation. With declining transactions, DeFi assets, and stablecoin supply, there is a risk of a bearish breakdown, with the initial target being the all-time low of $0.2490. However, a breakout above the upper boundary of the descending channel could signal a bullish trend reversal and potentially lead to further price gains.
Overall, Sonic’s recent price surge and milestone in transactions highlight both the achievements and challenges facing the network. Investors will be closely monitoring developments in transaction activity, ecosystem health, and price movements to gauge the future direction of Sonic’s token.