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Sonic [S] Falls 17% in a Day: Can It Avoid Further Losses?
February 26, 2025
In a drastic turn of events, the cryptocurrency market has witnessed a significant decline in Sonic [S], falling by an astonishing 17% over the past 24 hours. The sudden and sharp drop in value raises concerns about the asset’s ability to recover from this downturn.
Several key metrics indicate a bearish sentiment is taking hold, suggesting that the decline may be far from over. Notably, Open Interest (OI), which tracks unsettled derivative contracts, has decreased by an alarming 19.44% to $114.13 million. This drastic drop signifies a mass closure of open positions in the market.
Furthermore, trading volume has surged by an eye-catching 49.77%, reaching $795.48 million. The surge in volume corroborates the notion that the market is shifting towards a bearish trend. It’s imperative to note that such a significant decline might result in a vicious cycle where traders become increasingly hesitant to buy, thus fueling further losses.
It has also come to light that liquidation data indicates an extraordinary amount of losses suffered by long positions, which have lost $1.32 million in the given timeframe. Conversely, short positions sustained relatively modest losses at approximately $81,000. As longs take more significant hits, this reinforces the notion that a downward trend is unfolding.
Despite the gloomy outlook, it’s crucial to recognize that TVL (Total Value Locked) has been steadily decreasing since February 24th, indicating an exodus of funds from Sonic. The decline in TVL amounts to $41.44 million within the given time frame.
The chart suggests a corrective phase may be occurring, but its magnitude remains unclear, leaving uncertainty about the asset’s potential rebound. It is uncertain whether this could be the start of a steeper decline yet.
As we delve into the traders’ sentiments and confidence levels, it becomes apparent that long positions are experiencing waning trust in the market. The funding rate has turned negative, hinting at a short-term trader dominance, which may further exacerbate the downturn.
Source: https://ambcrypto.com/sonic-s-falls-17-in-a-day-can-it-avoid-further-losses/
