Sonic (S) has been hovering near the $0.316 support level for several days, forming a potential double bottom pattern, while the total value locked (TVL) of the network exceeds $2 billion.
This level has remained stable since late April, despite the broader market correction. The current chart structure reflects a consolidation phase, not capitulation.
A breakout above the resistance level of the downtrend could confirm a reversal and attract sidelined capital. If momentum strengthens, the next price test target will be $0.409.
Momentum for the bulls?
In the past seven days, the DEX trading volume of S has increased by 16.97%, reaching over $539.95 million. The increase in decentralized trading activity highlights the growing user engagement, even as the DEX/CEX dominance ratio stands at only 0.32%.
The low DEX ratio indicates that a large portion of the volume is still flowing through centralized platforms. However, rising DEX figures may signal that users are seeking more control in the context of unstable market conditions.
If this trend continues, it could mark a shift in behavior supporting long-term price growth.
Smart money begins to accumulate
Spot market data shows $4.13 million in inflows compared to $3.55 million in outflows on June 17.
Although net cash flow remains neutral, recent sessions have recorded accumulation activity as prices decline, with outflows dominating during small rallies.
This behavior signals investor caution, but it also reflects confidence in the structural support of S. The absence of significant sell-offs near the $0.316 floor further reinforces it as an important level.
Therefore, limited outflows in the spot market signal a potential bullish breakout setup.
Are whales back?
Large investors have significantly increased their exposure, with a net flow increase of up to 1,170% over the past seven days. Such a sudden surge indicates strong accumulation activity by whales, likely to anticipate a reversal from current lows.
Historically, such moves often precede strong rallies – especially when the technical setup aligns with fundamental factors.
With Sonic still trading below a critical resistance level and whales actively participating, this accumulation phase could mark the early stages of a trend reversal.
Bearish sentiment paves the way for opportunity
On-chain indicators show that 96.61% of Sonic holders are at a loss at the time of writing, with only 3.27% in profit. This significant imbalance suggests a prevailing bearish sentiment in the market.
However, this also creates a favorable setup – short-term profit-taking pressure is limited and the potential for price increase is significant if resistance levels are broken.
Bearish sentiment often creates unexpected volatility, especially when catalysts such as whale accumulation and increased DEX volume emerge.
Can Sonic break out bullish?
Sonic has shown multiple signals of potential bullish reversal at the time of writing, with strong whale accumulation, increased DEX activity, and a solid TVL base of $2 billion.
Price action has firmly maintained the $0.316 level, forming a promising double bottom structure. With 96% of holders still at a loss, the breakout potential will be significant if this critical resistance is breached.
The combined technical and fundamental strength could trigger a change in market sentiment and ignite a sustainable rally.