Main to remember
Sonic saw a price increase following an influx of more than $ 23 million on TVL and Netflows of a positive chain. However, the potential of a supported boom does not line up fully with recent gains.
During the last day, Sonic (s) became one of the best interpreters on the market, posting a 10% gain – a net reversal compared to the 17% drop he had recorded earlier.
Ambcrypto’s analysis has revealed that if the wider market remains optimistic, the feeling through key measures is not aligning, leaving room for a possible decline. Here’s how the situation could take place.
S: liquidity increases
The total locked value (TVL), which assesses the confidence of investors in an asset, has taken on a major change because investors adopt long -term prospects.
During the last day, this group of investors added a value of $ 21.05 million in protocols on the sound chain, according to Defilma.
Source: Defillama
This influx suggests that the funds have been locked, a sign that the dominant feeling leans towards an appreciation of long -term prices.
In addition, the Netflow Data channel, which measures liquidity, rises and leaving the network, shows that investors have punctuated the assets of other channels in Sonic to acquire its native token.
Currently, $ 832,000 of S have been added to the chain, solidifying its liquidity position at the current levels.
Chain activity does not correspond
Chain activity does not correspond to the recent Sonic price gains. At the time of the rally, active addresses and daily transactions on the chain decreased.
Active addresses generally indicate a broader use of the network and an increase in utility for a token, which is often correlated with demand.
Source: Artemis
Currently, the number of active addresses fell to 15,700, or 500 addresses of the annual lowest of 15,200, a level which previously coincided with a drop in prices.
Likewise, daily transactions have dropped. At the time of writing the time of the editorial staff, the transactions amounted to 294,800, confirming that the remaining users are less committed.
There was an average of 18.7 user transactions, compared to 27.5 per user in May 2023, when prices activity increased in particular.
The out of Chain feeling remains weak
The out -of -chain feeling on centralized exchanges is also low. During this period, the liquidity movement and the momentum behind the rally were minimal.
For the context, Sonic’s daily negotiation volume amounted to $ 6.14 million, a drop of 32%.
Historically, an increase in prices accompanied by a drop in volume indicates a low momentum behind a rally, suggesting a potential withdrawal.
Source: Coringlass
Coinglass’s open interest data also confirms this trend. The total liquidity of derivatives amounts to only $ 23 million, with only $ 340,000 added in the last day.
Liquidation data show that traders have deleted less than $ 200 in market positions, reflecting a low feeling of derivatives and little interest in Sonic.
If this trend in the feeling in mind and out of the channel continues throughout the week, Sonic can face a reversal of the gains that she recorded during the last day.
