Sonic Price Don Bounce Back 10% After E Drop 17% Because Usage No Too Strong
Sonic price rally do 10% after e drop 17%, e dey carry comot $21 million TVL inflow plus $832,000 chain netflows. But on-chain metrics dey lag: active addresses drop to 15,700 and daily transactions fall to 294,800, users dey average 18.7 transactions compare to 27.5 in May 2023. Off-chain sentiment still dey weak. Sonic daily trading volume slide 32% to $6.14 million, derivatives open interest stand for $23 million, just $340,000 added and minimal liquidations. The gap between price gains and declining network usage show say momentum weak, e raise risk of pullback. Traders suppose weigh the short-term rebound against these bearish indicators before dem increase Sonic exposure.
Bearish
Even tho Sonic price don bounce 10%, the rally no get strong support for on-chain and off-chain momentum. Active addresses and daily transactions dey near yearly low, while trading volume and derivatives open interest don drop. This kind divergence usually dey lead to short-term correction dem before, like how e be during altcoin rallies for May 2023 when low engagement dey before price fall. Weak network use and volume dey fall show say current gains no too strong to last. Traders likely go dey sell for this rally, wey go make downside pressure increase. For short term, Sonic fit face retracement as bearish sentiment dey prevail. But if TVL growth continue and user activity bounce back, long-term outlook fit stabilize. Overall, market immediate impact na bearish.