{"id":41624,"date":"2025-02-26T05:25:12","date_gmt":"2025-02-26T02:25:12","guid":{"rendered":"https:\/\/btcacademy.online\/crypto\/?p=41624"},"modified":"2025-02-26T05:25:12","modified_gmt":"2025-02-26T02:25:12","slug":"sonic-s-stock-plummets-17-in-a-single-day-can-it-recover","status":"publish","type":"post","link":"https:\/\/btcacademy.online\/crypto\/sonic-s-stock-plummets-17-in-a-single-day-can-it-recover\/","title":{"rendered":"Sonic [S] Stock Plummets 17% in a Single Day: Can it Recover?"},"content":{"rendered":"\n

Over the past few weeks, Sonic [S] (previously known as FTM) has been showing a positive trend, with consistent gains. Within just one month, it surged by 31.11% and added another 21.75% in the last week alone.<\/p>\n

However, as of the latest update, Sonic experienced a significant drop of 17.22% in the last 24 hours. This sudden decline can be attributed to an increase in liquidity outflow and mounting selling pressure from traders in the derivatives market.<\/p>\n

Critical Indicators Signal a Downturn<\/strong><\/h2>\n

There has been a noticeable shift in the derivative market, with key metrics pointing towards a bearish outlook for Sonic in the near future.<\/p>\n

The Open Interest (OI), which indicates the volume of outstanding derivative contracts, witnessed a substantial decrease, plunging by 19.44% to $114.13 million. This decline suggests a significant closure of contracts in the market.<\/p>\n

The bearish sentiment stemming from this dwindling OI is corroborated by the surge in trading volume, which spiked by 49.77% to reach $795.48 million across the market.<\/p>\n

Furthermore, the data on liquidations, detailing losses incurred by both buyers and sellers within a specific timeframe, further confirm this bearish trend.<\/p>\n

Notably, the segment with the highest losses indicates a shift in market direction.<\/p>\n

At present, the market has seen liquidations exceeding $1.4 million, with long positions accounting for $1.32 million in losses, whereas short contracts faced losses of only $81.05 thousand.<\/p>\n

The higher losses observed in long positions signify a downward trend in the market, indicating a continuation of this trajectory until key market metrics show a change.<\/p>\n

Decline in Liquidity Outflow<\/strong><\/h2>\n

Liquidity has been steadily draining out of the Sonic market. The Total Value Locked (TVL), tracking the amount of assets deposited into various protocols within the ecosystem, has shown a consistent decrease.<\/p>\n

As of the latest data, the TVL has plummeted from a peak of $736.04 million on the 24th of February to the current level of $694.4 million.<\/p>\n

This signifies a total outflow of $41.44 million from the market, with expectations of further decline if the selling pressure persists.<\/p>\n

A broader analysis of the TVL chart hints at a potential correction phase before a probable rebound, a pattern witnessed on multiple occasions.<\/p>\n

However, the magnitude of this correction remains uncertain, raising the possibility of the most substantial drop so far.<\/p>\n

Diminishing Traders\u2019 Confidence<\/strong><\/h2>\n

The confidence among long traders in the market has weakened as the funding rate turns negative, indicating a shift towards dominance by short-term traders.<\/p>\n

With a reading of -0.0071, the market is likely to witness further decline, as more short traders opt to pay a premium to uphold the price spread between the spot and derivative markets.<\/p>\n

Overall market sentiment strongly suggests that Sonic is currently grappling with its most bearish phase and is poised for additional price drops.<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past few weeks, Sonic [S] (previously known as FTM) has been showing a positive trend, with consistent gains. Within just one month, it surged by 31.11% and added another 21.75% in the last week alone. However, as of the latest update, Sonic experienced a significant drop of 17.22% in the last 24 hours.<\/p>\n","protected":false},"author":1,"featured_media":41625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=41624"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41624\/revisions"}],"predecessor-version":[{"id":41627,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/41624\/revisions\/41627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/41625"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=41624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=41624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=41624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}