- Sonic’s TVL fell by $ 140 million, signaling of liquidity output and added strong downward pressure to price action.
- Retail traders started to sell after months of accumulation, which increases the chance of further price decrease.
The last few days, Sonic [S] has fallen by 11.25%, which means that investors from the past month register a loss of 3.78%.
Currently, with both retail and large investors, market activity Beerarish remains linked to the decentralized protocol Aave [AAVE]contribute to the decline.
Behind the scenes of Sonic liquidity flow
The recent fall in the price of Sonic can be reduced to a considerable outflow of the market in the last 24 hours. An important indicator for this is locked the total value (TVL).
According to Defillama, Sonic’s TVL fell by $ 140 million in just 24 hours and the ecosystem drew down in the direction of several week low points.
Source: Defillama
This decline coincided with a decrease of 10% in Stablecoins deployed on Sonic – from $ 582.33 million to $ 523.39 million in the past week. In short, the liquidity is quickly gone – and does not return.
These recordings suggest that both retail users and larger entities are the positions and leave exposure.
Can protocol whales be behind the drop?
Moreover, Aave’s protocol activity on Sonic is not done better. In the past seven days, the TVL from Aave fell with a steep 27.28%, the biggest decrease in large sonic protocols.
Source: Defillama
Such a decline may mean that large holders drive through the outflow. Ambcrypto has since analyzed the behavior of major holders in the market.
According to the large holder Netflow – which follows the inflow and outflow activity by major players – 2 million FTM was sold.
Source: Intotheblock
For the current price, this group only sold to Tokens in the last 24 hours for $ 950,000. If this trend continues, Sonic will probably continue.
Spot traders participate in the promotion
Spot traders, usually retail investors, also contribute to the current trend.
For the first time since March, this group registered a weekly sale of Sonic. Coinglass data shows that investors have sold more than $ 300,000 to the active.
Source: Coinglass
When such a shift occurs after weeks of accumulation, it indicates a very negative market sentiment around the next step of the Active.
For now, most market indicators indicate the chance of a further decrease in the value of Sonic.