Sonic poised for deeper correction ahead despite a potential Coinbase listing

Sonic’s price is likely to continue sliding in the coming weeks, as bearish technical indicators persist and momentum across its ecosystem slows down.

Sonic (S) price fell 15% to an intraday low of $0.314 on June 13, down by over 68% from its highest point this year. This crash has brought its market capitalization close to losing the $1 billion mark, and down from $3.15 billion in January.

Rising geopolitical tensions triggered a flight from risk assets on June 13. After Iran launched a military attack on Israel, with retaliatory threats building, the global crypto market lost over 7% in value. Sonic was among those hit the hardest.

While Coinbase’s confirmation of an S token listing earlier today brought brief attention to the project, it hasn’t altered the trend. On-chain data remains decisively bearish, with core metrics pointing to sustained weakness across the network.

Data from Santiment shows that the total value locked across DeFi protocols on Sonic chain has plunged from nearly $2 billion in May to $1.54 billion. Flagship protocols including Silo Finance, Pendle, AAVE, and Beets have seen their TVLs drop by 35% to 50% over the past month.

This slowdown in activity means Sonic isn’t making as much revenue as it was a few months ago. Daily on-chain revenue has slipped to just $5,977 as of Friday, compared to a peak of over $42,000 in May.

You might also like: Sonic Labs announces 200M S token airdrop, U.S. residents will be eligible

Stablecoin supply on Sonic has also contracted by nearly $200 million this year. Fewer stablecoins in circulation means liquidity across the network has weakened, and user activity has consequently slowed.

Furthermore, funding rates across exchanges have remained negative, indicating bearish sentiment among traders. Santiment data shows, on May 13, the funding rate dipped to 0.05%, its lowest in over a week, indicating that traders expect Sonic’s price to fall below the spot rate.

Based on these bearish on-chain metrics, Sonic may continue to face downward pressure in the near term, with limited signs of a strong recovery unless ecosystem activity and investor sentiment show a meaningful turnaround.

Sonic price analysis

On the 1-day USDT chart, Sonic’s price has been in free fall over the past few weeks.

It recently dropped below $0.32, which was its last strong support level, and well under $0.38, a key zone that matched April’s lowest swing. The $0.38 level also acted as the neckline of a double-top pattern that formed around $0.618, a classic bearish signal in technical analysis.

S price, 20-day and 50-day SMA chart — June 13 | Source: crypto.news

Sonic has also been moving within a falling broadening wedge, which usually indicates continued downward pressure as long as the price stays inside the pattern.

Adding to the bearish setup, the 20-day simple moving average has crossed below the 50-day, forming a death cross, and it’s continuing to widen, suggesting sellers are still in control.

The MACD lines are pointing downward, and the Aroon Up is sitting at 0% while Aroon Down is elevated, both signs that the downtrend is still strong.

S MACD and Aroon chart — June 13 | Source: crypto.news

Based on this setup, Sonic’s price could keep sliding, with the next major psychological support level around $0.30.

However, if buyers manage to step in and push the price above the upper boundary of the wedge, it could signal a bullish reversal and send the token back above $0.399, which also lines up with its 20-day moving average.

Source