Sonic (S) Price Forecast: What’s Next After $1.54B TVL Milestone?

Why Is Sonic Price Rally: What’s Next After 15% Surge This Week?

Sonic(S), earlier named Fantom(FTM), is strong on bullish momentum after a rise of 15% on Thursday. At the time of writing, the token is trading at $0.55 while major key on-chain metrics indicate green for the events ahead. Due to the integration of Binance Wallets and the rise of its TVL(s), the sonic ecosystem soon seems set for explosion.

Sonic TVL Hits Record High: A Key Bullish Signal

According to DefiLlama figures, the altcoin TVL rose to a record high of $1.54 billion, indicating increased user activity and capital inflow into the ecosystem. This record-breaking rise in locked capital indicates growing confidence in DeFi protocols on the Sonic chain, a positive indicator of network health and long-term sustainability.

TVL is soaring up after Binance on May 1 announced the onboard of Sonic into its Binance Wallet. This forms part of a strategic onboarding exercise since the users can directly interact with Sonic's decentralized applications (dApps) through the Binance Wallet interface and transfer tokens seamlessly. Notably, Binance teased airdrop incentives for active traders operating out of the wallet on Sonic as part of its Alpha Projects campaign.

Open Interest and Stablecoin Activity Reinforce Bullish Outlook

Another bullish argument for the token is valid as per Coinglass stats, which showed that open interest (OI) on futures contracts skyrocketed from $94.22M to $140.32M, a new all-time high. This jump in OI means that fresh capital is entering the market, which is usually followed by some price momentum. 

Furthermore, on-chain indicators show an increase in the stablecoin market capitalization on the S network, indicating improved confidence and liquidity among investors.

Technical Analysis: Price Hovers Near Breakout Zone

From the technical point of view, the altcoin is in consolidation in an ascending triangle formation, which is generally a bullish breakout pattern. Price action is creating higher-highs and higher-lows, thus indicating more strength to the buying side. Meanwhile, the coin is trying to take back the $0.6 breakout zone, which is an important resistance level. 

However, the indicators present mixed signals:

RSI is moving up towards its ascending support. Yet, CMF has fallen below 0, suggesting that the bears are still active.

If the token fails to break above $0.6, then a pullback to the support zone at $0.5 may take place. Nevertheless, the price is approaching the apex of the triangle, suggesting that we shall see a breakout soon enough.

Price Forecast: What’s Next for Sonic (S)?

The short term might see it fluctuating between $0.56 and $0.6, with an expected breakout should bullish pressure maintain momentum. A confirmed breakout above $0.6 can:

Trigger a rally to the medium target of $0.8. 

Set a potential climb to the ultimate resistant level before shooting for $1 ($0.9).

With volume-backed strength beyond $0.9, the altcoin may gain new liquidity and drive its adoption even further, leaving the door open for testing a new all-time high (ATH).