Sonic [S] at the time of writing, rose over 18% in the past 24 hours, following a resurgence in trading activity and interest in the token. Daily trading volume has confirmed the increased user engagement as it increased by 558% to approximately $60 million.
On June 26, the altcoin’s price fell 12%, caused in part by the resignation of Sonic Labs executives Michael Kong, Andre Cronje and David Richardson. In response, new CEO Matt Visser has outlined new initiatives aimed at stabilizing the long-term value of the token.
Sonic suspends annual token inflation and boosts on-chain activity
According to the new announcement from Sonic Labs, the planned annual token inflation has been suspended as the team aims to stop it permanently. This means that the number of S tokens that were to be issued has been halted, resulting in renewed investor interest and confidence in the project. As a result, trading activity has increased more than fivefold, as previously mentioned.
As a result, supply chain activity increased, as evidenced by two key metrics. For example, Sonic’s number of unique addresses reached a new all-time high of 7.20 million after the addition of 487 addresses.
In addition, the number of daily transactions increased from 184K to 216K during this period. This represented a peak of 32K, equivalent to more than 17%.
This data showed that fundamental factors not only influence price action, but also network activity. The initial increase in network activity was mainly due to the enormous sales activity.
Sonic approaches the KEY resistance zone
The price charts reflected the same strength. That is, Sonic rose from the center of the descending trend channel after a previous price decline. The channel has been in existence since mid-May, rejecting any rise from the upper trendline.
Sonic was approaching a descending trendline, and a breakout above it could change the market structure. This outcome seems more likely because the Bull Bear Power indicator shows that buyers have strong dominance. Still, the trendline can act as resistance to further gains. Net volume data confirms this, with approximately 9.36 million S tokens sold at the time of writing.
If the latter happens, it could mean that the small uptrend is not sustainable, at least in the short term. Otherwise, a level break followed by consistent price gains would signal that the strategy could stabilize S’s token value in the long term.
Final summary
- Sonic’s price increases by 18% as the team announced the suspension of annual token inflation.
- The S price approached the upper resistance of the trendline, where the reaction around this level will determine the next move.