Sonic price continued its recent uptrend as most cryptocurrencies rebounded and its Decentralized Finance ecosystem soared.
Sonic (S), formerly known as Fantom, rose to a high of $0.6072 on Monday, its highest level since March 3.
In an X post, The DeFi Plug, a popular crypto researcher, explained two main reasons why the ongoing Sonic rally has more room to run.
First, he noted that the Sonic token was highly undervalued compared to other layer-1 coins, especially Solana. He pointed out that Solana (SOL). He noted that Solana had a market cap-to-DeFi TVL multiple of 12 compared to Sonic’s 2. As such, if Sonic catches up to Solana, it would signify a 5 to 10 times gain from the current level.
Second, while Sonic’s ecosystem has grown, the analyst predicts that it has more upside to go. That’s because it has gained over $854 million in DeFi TVL in less than three months since its rebranding from Fantom.
The number of developers in Sonic is growing, thanks to its low transaction fees and faster speeds. Most importantly, unlike other chains, Sonic uses the fee monetization model that returns 90% of the network gas fees to developers. About 70 developers have earned over $418,000 since its launch.
This model will likely attract more developers to the network. Just recently, AAVE (AAVE), the second-biggest DeFi network, moved to the network and has attracted over $250 million in assets.
Sonic price short-term analysis
The four-hour chart shows that the Sonic token has rebounded from $0.4055 on March 11 to $0.60. It has moved above the key resistance level at $0.5610, where it formed a double-top pattern on March 15 and 20.
Sonic price has moved above the 50-period moving average. It is also above the ascending trendline that connects the lowest swings since March 11. This trendline was the diagonal of the ascending triangle pattern.
Sonic has jumped above the 61.8% Fibonacci Retracement level and the Ichimoku cloud indicator. Therefore, the token will likely continue rising as bulls target this month’s high of $0.7891, which is about 30% above the current level. A move above that level will signal more gains to $1, which is 60% higher than the current point.
