Key Takeaways
Sonic’s active addresses rose 89%, but whales and Open Interest showed bearish divergence. The altcoin broke out of a wedge pattern, but resistance at $0.379 capped momentum.
Sonic’s [S] network has witnessed a significant spike in engagement, with active addresses soaring by 89% in just seven days.
This rapid increase highlights heightened user participation, possibly driven by new dApps or incentive programs.
Despite this on-chain traction, Sonic fell by 7.08% to $0.3411 at the time of writing, suggesting that price action is not yet aligning with user metrics.
Historically, such divergences have often signaled market indecision or lagged investor reaction.
Accumulation or exit liquidity?
Sonic’s spot exchange netflows have remained consistently negative, recording a fresh -$495.89K outflow at press time.
This ongoing trend suggests that investors continue to withdraw their holdings from centralized platforms, potentially favoring cold storage or DeFi opportunities.
However, this pattern could also indicate a lack of confidence in short-term price performance.
While net outflows often reflect bullish accumulation behavior, they can just as easily signal capital rotation or risk-off sentiment.
Are whales and sellers teaming up?
The Spot Taker CVD revealed dominant taker-sell activity, signaling aggressive market selling pressure that continues to cap upward momentum.
This aligned with a 30.79% drop in large transactions, showing whales have significantly reduced activity, possibly exiting or sitting out.
The combined force of whale hesitation and active sell-side pressure created a challenging environment for price recovery, despite strong retail participation.
Rallies need whale accumulation and buyer dominance, but Sonic currently lacks both.
Therefore, unless institutional conviction returns and taker flows flip positive, the asset may continue to struggle near key resistance zones.
Sonic: Open Interest reveals…
Open Interest has declined by 14.69%, falling to $112.04M—a clear indication that traders are closing out positions.
This reduction in speculative exposure typically points to cooling momentum, especially when paired with negative taker flows.
A falling Open Interest suggests that bullish traders may have exited after failed breakout attempts, or bearish traders are taking profits.
Either way, market participants appear cautious, awaiting a clearer trend confirmation. Without fresh capital entering derivatives markets, it becomes difficult for Sonic to sustain upward price extensions.
Can Sonic sustain above $0.34?
Sonic recently broke out of a falling wedge pattern but faced resistance around the $0.379 mark.
At $0.3411, the asset is hovering near the reclaimed support zone, with the Stochastic RSI showing overbought conditions (77.71). This suggests that short-term consolidation or minor pullbacks could emerge.
The structure can remain bullish if Sonic holds above $0.296. Rejection from $0.379 would delay upside targets, while a successful breakout could reignite momentum.
Therefore, bulls must defend the current zone to maintain any structural advantage.
Source: TradingView
Can rising activity outweigh weakening market conviction?
Despite Sonic’s impressive address growth and technical breakout, the broader market reflects hesitation. Taker-sell pressure dominates, Open Interest is dropping, and whales are pulling back.
While retail interest is climbing, it may not be enough to reverse the bearish tone unless key resistance levels break, and derivatives flows shift bullish.
Sonic must now prove that its on-chain activity can drive a deeper market recovery.
