17 Feb 2025 Morgan Hayze
Sonic’s TVL Explodes Past $400 Million, Can Its Price Continue Going Up?
Among the top 100 cryptocurrencies, Sonic (S), formerly known as Fantom (FTM), has gained the most in the last day. The token's price reached $0.59 after a 41.81% increase over the previous seven days.
Source: CoinMarketCap
Beyond the increase in Sonic's price, however, funding has poured into the project. This increase indicates growing investor confidence in the cryptocurrency.
Is a prolonged breakthrough possible for S given the increasing momentum?
Sonic's price was poised to drop below $0.40 on February 10. But as bullish momentum took over, it reached a high of $0.57, and the entire landscape changed. That is not the only intriguing development about the project, though.
Sonic's Total Value Locked (TVL) has risen to a record level of $426.66 million, according to DeFiLlama.
The dollar worth of assets locked in a protocol is referred to as TVL. Strong user confidence is indicated when the TVL rises, which also signifies an increase in the liquidity deposited.
However, a drop in TVL indicates that users think the rewards from the protocol are no longer alluring, which leads to withdrawals and erodes platform confidence.
In the face of persistent market volatility, Sonic's increasing TVL indicates optimism. As a result, rising demand for the cryptocurrency may drive up its price more if the spike continues to be a driving force behind the price performance of Sonic.
Additionally, according to Santiment statistics, Sonic's social dominance—a measure of how much conversation a cryptocurrency produces in comparison to the top 100 assets—rose sharply.
An increase in this measure indicates that there are more discussions about the asset. Conversely, a decline suggests otherwise. With social dominance at 5.39%, there may be more demand for the token, which might raise Sonic's price.
The idea that Sonic's price may trade higher is supported by CCN's research of the In/Out of Money Around Price (IOMAP). Key price levels that could act as support or resistance zones are identified by the IOMAP.
Stronger support is usually indicated by a larger volume of tokens in the money for a given price range, and stronger resistance is indicated by a larger volume of tokens out of the money.
Sonic's price has strong support between $0.50 and $0.52, according to IntoTheBlock's research. 846 addresses acquired almost 170 million tokens at this price range, which is more than the total amount bought between $0.55 and $0.62. This suggests that as the cryptocurrency rises in value, there won't likely be much selling pressure. The S price may soon rise above $0.60 if it is maintained.
A similar optimistic prognosis appears to be presented by the technical outlook as well. Sonic's price has surpassed the important Exponential Moving Averages (EMAs) on the 4-hour chart.
In particular, when the EMA rises above the price, the trend is bearish. But in this instance, the 20 EMA (blue) has also crossed over the 50 EMA (yellow), even if the token's value has increased above the indications.
This position, which is known as a "golden cross," supports the bullish trend around S. Sonic's price has also increased beyond the 0.618 Fibonacci level at $0.50, as seen in the image below, confirming the token's strong support.
Given this prediction, Sonic's price is probably going to rise to $0.62, the 0.382 Fib level. The price of the S could increase to $0.70 if buying demand increases.
This tendency might reverse, though, if the demand for the cryptocurrency declines and the TVL falls. Under such circumstances, S might fall to $0.41
