Why Sonic’s 558% volume spike could be more than a relief rally

Sonic [S] surged by over 18% in the past 24 hours at press time, following a revival in trading activity and interest in the token. The daily trading volume has confirmed the increased user involvement as it rose by 558% to about $60 million.

On the 26th of June, the altcoin’s price dropped 12%, triggered in part by the resignations of Sonic Labs executives Michael Kong, Andre Cronje, and David Richardson. In response, new CEO Matt Visser has outlined fresh initiatives aimed at stabilizing the token’s long‑term value. 

Sonic suspends annual token inflation, fuels chain activity

As per Sonic Labs’ new announcement, the planned annual token inflation has been suspended as the team aims to stop it permanently. This means that the number of S tokens that were supposed to be issued has been halted, resulting in renewed investor interest and confidence in the project. As a result, trading activity increased by more than fivefold, as previously mentioned.

Consequently, chain activity jumped as seen in two key metrics. For instance, Sonic’s Unique Addresses hit a new all-time high of 7.20 million after the addition of 487 addresses.

Additionally, the number of Daily Transactions increased from 184K to 216K during this period. This represented a 32K spike, which was equivalent to more than 17%.

This data showed that fundamentals not only impact the price action but also the network activity. Notably, the initial surge in network activity was as a result of immense selling activity.

Sonic approaches KEY resistance zone

The price charts reflected the same strength. That is, Sonic was rising from the middle of the descending trend channel after an earlier price drop. The channel has been in place since mid-May, with every strike of the upper trendline met with rejection.

Sonic was approaching a sloping trendline, and a breakout above it could shift the market structure. This outcome appears more likely as the Bull Bear Power indicator shows buyers holding strong dominance. Still, the trendline may act as resistance to further gains. Net Volume data confirms this, with about 9.36 million S tokens being sold at press time.

If the latter happens, it could mean the small uptrend is not sustainable, at least in the short term. Otherwise, a breach of the level followed by consistent price gains would signal that the strategy may stabilize S token value in the long term.

Final Summary

• Sonic price surges 18% as the team announced the suspension of annual token inflation. 
• S price was approaching the upper resistance of the trendline, where its reaction around this level will determine its next move.