In the past 24 hours, liquidity outflows have been on the rise in the market, indicating a growing selling pressure and negative sentiment among derivative traders. Sonic, an altcoin, experienced a significant decline of over 20.37% during this period, highlighting the impact of sellers in the market. The selling pressure is expected to continue as traders remain bearish, suggesting a potential further market correction.
The decline in Sonic can be attributed to massive liquidity outflows at both chain and protocol levels. After a week of significant chain inflows, the sentiment shifted as netflows turned negative by $4.3 million within just 24 hours. This negative netflow indicates that market participants are selling off their assets. Additionally, Sonic’s total value locked (TVL) has also decreased, dropping from $1.078 billion to $995.95 million, further contributing to the altcoin’s decline.
In the derivatives market, short positions have been dominant for Sonic, with the funding rate turning negative at -0.0114%. This suggests that short traders are betting on a further decline in the market, adding to the selling pressure. The trading volume for Sonic has also surged by 417.19% to $44.02 million, indicating high selling pressure across the market. If this trend continues, holders and long traders may experience further losses.
To determine Sonic’s potential movement, it is crucial for the price to hold above a key demand level on the chart, which ranges between 0.38 and 0.42. Failure to maintain this level could lead to a decline towards the next target of $0.318. The level of selling momentum in the market will determine whether the asset continues to decline or sees a rebound in the future. Traders should closely monitor these levels to make informed decisions on their investments.
