Sonic’s on-chain activity is surging as its native token, S, shows signs of a bullish continuation. The network’s total value locked (TVL) has grown, drawing new users and DeFi projects.
Technical analysis suggests that S is forming a cup and handle pattern, a structure that often precedes an upward breakout. Market participants point to Sonic’s rising adoption and DeFi expansion as key drivers for future price action.
Investor sentiment around Sonic has strengthened, with TVL surpassing expectations. A post by Investors Reality highlighted that while many altcoins have seen sharp declines, Sonic’s TVL has multiplied 28 times.
$S
— Investors Reality (@invest_reality) March 5, 2025
Sonic TVL $700M+ 👀
While your altcoins are down -50% from the start of 2025 Sonic has 28x in TVL 🚀
DeFi is booming with great APR's and now AAVE joined the party.
New retail and Solana degens come to Sonic chain and make passive income while you touch grass.#S #Sonic pic.twitter.com/TxLvhCFR19
The surge has positioned the platform as a strong player in the DeFi space, with AAVE joining its ecosystem. The influx of new retail investors and Solana-based users has further fueled activity.
Sonic’s rising TVL reflects strong demand for its DeFi applications. Lord Durden, another market observer, noted that the platform continues to gain momentum. He emphasized Sonic’s expanding number of functional DeFi applications and gradual TVL growth, suggesting that these factors strengthen its long-term potential.
What you'll learn 👉
S Token Forms Cup and Handle Pattern
Technical analysis supports the bullish outlook for Sonic. A chart shared by Lord Durden displays a cup and handle formation, indicating a potential breakout. The rounded bottom of the cup formed between late January and February, with a handle now in progress.
The price of S at press time hovers about $0.5646, trading below the mid-range of the handle. The main support zone lies at the 50-day moving average and the $0.48–$0.52 range. Strong sellers have established resistance around $0.75 and $0.80. A breakout above this level could trigger an upward move toward $1.90 to $2.20.
Nice to see @SonicLabs bouncing well and still setting up for that beautiful cup and handle pattern ☕️
— Lord Durden (@LordDurden) March 5, 2025
Technical Analysis aside, $S has the metrics that really matter at the moment:
➡️ Gradually escalating TVL 📈
➡️ Steadily increasing number of solid and functional DeFi apps… pic.twitter.com/6hUvl3TiQX
Despite Sonic’s bullish setup, recent price action has shown mixed signals. S declined 3.15% in the last day and 22.87% over the past week, indicating profit-taking. This type of correction is common within a handle formation but requires confirmation.
The confirmation of a breakout will be largely dependent on volume. Further upside would be indicated by a robust spike in trading activity around $0.75–$0.80, but ongoing consolidation could result from low volume. The bullish argument is maintained by the 50-day moving average’s ongoing dynamic support.
Read also: Dogecoin (DOGE) Could Still See a 30x Price Surge to $6: Here’s How
Sonic Breakout Potential and Key Levels to Watch
S remains at a pivotal point. A breakout above $0.80 with strong volume could validate the cup and handle pattern, pushing the price toward the projected $1.90–$2.20 range.
However, failure to hold above $0.48–$0.52 could invalidate the setup and lead to further downside. Market participants are watching whether buyers step in to sustain momentum. With rising TVL and increased DeFi adoption, the fundamentals support a bullish trend.
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