Sonic (S) is up over 18% in the last 24 hours following a revival in trading activity and interest in the token. Daily trading volume confirmed increased user engagement, rising 558% to nearly $60 million.
On June 26, the altcoin price fell 12%, triggered in part by the resignations of Sonic Labs executives Michael Kong, Andre Cronje, and David Richardson. In response, new CEO Matt Visser outlined new initiatives aimed at stabilizing the token’s long-term value.
Sonic suspends annual token inflation, increases chain activity
According to a new announcement from Sonic Labs, the planned annual token inflation has been put on hold as the team aims to stop it permanently. This means that the number of S tokens that needed to be minted has been stopped, resulting in renewed investor interest and confidence in the project. As a result, trading activity increased more than fivefold, as previously mentioned.
As a result, chain activity jumped, as seen in two key metrics. For example, Sonic’s Unique Addresses reached an all-time high of 7.20 million after the addition of 487 addresses.
Also Number of Daily Transactions augmented from 184K to 216K during this period. This represented an increase of 32K, equivalent to more than 17%.
This data showed that fundamentals influence not only price movement but also network activity. In particular, the initial increase in network activity was a result of intense sales activity.
Sonic KEY is approaching the resistance zone
Price charts also reflected the same strength. Well, sonic It was rising from the middle of a descending trend channel following a previous price decline. The channel has existed since mid-May and every hit of the upper trend line has been rejected.
Sonic was approaching a sloping trend line, and a break above it could change the market structure. This outcome seems more likely as the Bullish Bearish Strength indicator shows that buyers have a strong dominance. Still, the trend line could act as resistance to further gains. Net Volume data also confirms this; At the time of publishing, approximately 9.36 million S tokens were sold.
If the latter occurs, it could mean that this small uptrend is not sustainable, at least in the short term. Otherwise, a violation of the level followed by consistent price increases will signal that the strategy can stabilize the S token value in the long term.
Final Summary
- Sonic price increased by 18% after the team announced the suspension of annual token inflation.
- S price was approaching the upper resistance of the trend line and its reaction around this level will determine its next move.
