Here’s why Sonic rallied over 10% today

Sonic’s price rallied 12.5%, deviating from the broader market trend as market participants remained bullish over its growing prominence in decentralized finance.

Sonic (S), formerly known as Fantom soared to $0.903 on on Monday, Feb. 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 at press time.

This surge in S price came as the global crypto market dropped 3.7% over the past day, with major altcoins like Ethereum (ETH), XRP (XRP), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) recording losses of 4-8%.

The major driver behind Sonic’s gains today appears to be a recent community report suggesting that crypto exchange Binance has become a validator for the Sonic network. While this has not been confirmed directly by Binance or the Sonic team, the news has likely fueled community interest, with some speculating whether this could lead to the launch of staking for S on the platform.

Additionally, Sonic partnered with Fjord Foundry, a decentralized fundraising launchpad that would enable developers to raise funds and launch tokens using S through fixed-price sales, Liquidity Bootstrapping Pools, and tiered sales.

The integration will likely boost S’s utility and adoption, attracting new projects to the Sonic ecosystem while increasing demand for the token.

Sonic’s growing presence in the DeFi industry has also contributed to the positive momentum.

According to DeFi Llama, Sonic has attracted nearly 80 developers over the past two months. These dApps have amassed $724 million in total value locked, making Sonic the 9th-largest blockchain by this metric. Some of the top DeFi protocols on Sonic include Silo Finance, Beets, Shadow Exchange, and Avalon Labs, each managing over $100 million in TVL.

Further, dApps built on the Sonic mainnet have seen a notable hike in daily revenues, averaging $176.4K over the past two days—way higher than the $24.73k recorded on Feb. 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% signals that buying pressure was far greater than the selling pressure at press time. 

The Relative Strength Index, which has remained above 50 over the past two weeks, also showed sustained bullish momentum in play.

Further, both the +DI and ADX lines are above 20, indicating more potential upside in the short term.

Analysts have also spotted a rare bullish pattern forming on the S 4-hour chart. Per analyst jagoilio.sonic S price has formed a Cup and Handle pattern on the chart, a popular continuation indicator in technical analysis.

As such, he estimates a $1.475 target price provided S completes the pattern, representing a 75% increase from the current level. The projected price echoes a similar target predicted by analysts at crypto.news earlier.

Fellow analyst Tyler 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.

At press time, S still held onto 7.3% gains over the past day, exchanging hands at $0.873 per coin.