The Sonic token is showing significant growth as it reaches 120 million transactions just six months post-launch, although various factors could affect its future.
Sonic Hits 120 Million Transactions
The Sonic token peaked at $0.3555 on Thursday, up 25% from its lowest point this week. However, the price has slightly dipped and was trading at $0.3300 at press time. This spike followed developers' announcement of the network crossing the 120 million transactions milestone.
Challenges Faced by Sonic Ecosystem
Despite this achievement, the Sonic ecosystem is showing signs of slowing down. Data from Nansen indicates that transactions have dropped by 202% to 8.6 million over the past 30 days. Additionally, the number of active addresses fell by 40% to 232,000. Furthermore, the amount of stablecoins in its ecosystem has dropped to $209 million, the lowest level since March and well below the year-to-date high of $597 million.
Technical Analysis of Sonic Token Prices
The daily chart indicates that the Sonic token price has traded sideways in recent days, hovering around $0.30, slightly above the year-to-date low of $0.2490. The token has formed a descending triangle pattern, suggesting a potential bearish continuation. A move below the $0.2490 level could signify further downside risk, while a breakout above the upper side of the pattern would indicate bullish momentum.
The current situation surrounding the Sonic token reflects uncertainty, as the achievement of transaction milestones is accompanied by signs of decreasing activity and a declining ecosystem. Investors should closely monitor further market developments.
