Here’s why Sonic price soared 25% this week

Sonic, formerly known as Fantom, was the second-best performing top-100 crypto coin this wee, as it jumped by 25%.

Sonic (S) soared to a weekly high of $0.5882 on Thursday, its highest level since January 31 and 75% above its lowest point this year. 

The token jumped as third-party data showed that its ecosystem was doing well. According to DeFi Llama, the total value locked in the ecosystem surged to a record high of $400 million, a big increase from the $27.5 million it had at the start of the year.

Most dApps in the ecosystem have had a big increase in assets. Silo Finance, a lending protocol on Sonic, has $133.7 million in assets, a 20% gain in the last seven days. 

Avalon Labs assets have jumped to $124 million. Other top-performing assets in the Sonic ecosystems are Shadow Exchange, SwapX, and ICHI. This performance is a sign that the network will continue having more developer interest over time.

Sonic price has jumped because of its rising staking yield which beats other crypto tokens. According to its website, Sonic has a staking yield of 5.98%, higher than Ethereum’s (ETH) 3.3% and Sui’s 2.55%.

Further, Sonic hopes to become a major player in the meme coin industry through its meme mania promotion. In the last few weeks, meme coins like Goggles, TinHatCat, and Indi have accumulated a market cap of over $3 million each.

Sonic price forecast

The two-hour chart shows that the S price bottomed at $0.310 earlier this month and has rebounded to $0.5500. It has moved slightly above the 50-period moving average. 

There are signs that the Sonic price is forming an inverse head and shoulders pattern, a popular bullish reversal sign. It has completed the left shoulder and the head section. 

Therefore, the coin may retreat to the right shoulder of $0.4325 and then resume the uptrend. A rebound above the neckline at $0.5878 will point to more upside, with the next level to watch being at $0.8480, up by about 96% from the current level. A crash below the shoulder section of $0.4325 will invalidate the bullish outlook.